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Bangladesh Cuts VAT on Thermal Coal Imports for Power Plants

Coal News - Published on Fri, 06 Dec 2019

Image Source: unuudur.com
Bangladesh’s National Board of Revenue has slashed the value added tax on coal import for power generation to 5% from the existing 15%. A statutory regulatory order of the revenue board in this connection said the reduced vat rate would remain effective until June 30, 2025. The order, signed by the NBR Chairman Mosharraf Hossain Bhuiyan, said that to get the reduced vat rate at 5% the traders must submit a letter to customs declaring they would use the fuel only for power generation. Importers, who import coal for other purposes, have to pay regular 15% VAT

The government cut the VAT at a time when three coal-based power plants in public sector and four in private sector were under construction and expected to go for production soon. A huge amount of coal would be required for the power plants and that the VAT reduction would minimize electricity production costs, as the coal accounts for about 65% of the total cost. Currently, there are no other duties on coal import.

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Posted By : Rabi Wangkhem on Fri, 06 Dec 2019
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