Home ›› Tax

BGMEA for lowering import duty on solar accessories to 1%

Staff Correspondent
14 Apr 2023 23:30:50 | Update: 15 Apr 2023 00:28:34
BGMEA for lowering import duty on solar accessories to 1%

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to slash the import duties on solar PV system accessories to 1 per cent so that the export-oriented garment factories can install solar power systems for saving energy costs.

BGMEA President Faruque Hassan sought the duty-cut facility in a letter sent to Finance Minister AHM Mustafa Kamal on Thursday.

In the letter, the apparel body suggested that the Total Tax Incidence (TTI) of solar panels, inverters, aluminium structures, fuel saver controllers and other accessories be lowered to 1 per cent from its existing rate — from 26.2 per cent to 58.6 per cent.

According to the letter, the government is encouraging entrepreneurs to use renewable energy in industries to solve the energy crisis. But due to high tariffs, it is not possible for entrepreneurs to set up solar power systems in industrial establishments.

As a result, entrepreneurs face various challenges in saving energy and setting up and running green factories.

It is possible to build environment-friendly industrial establishments by installing solar panel systems there. Besides, foreign buyers are interested in manufacturing and importing garments through compliant factories, the letter read.

“Meanwhile, our garment factories have already invested significantly in setting up solar panel-based renewable energy plants. But high tariffs on equipment for solar panel systems are hampering the country's journey towards renewable energy,” it added.