Bangladesh has introduced a major tax relief measure for imports of solar power equipment and components, reducing the tax burden from 17% to just 1%.
The latest relief follows SRO No. 159-Law/2026/14/Customs, dated 8th June 2026, which had already exempted specified solar power equipment from customs duty, regulatory duty and supplementary duty. The SRO covered items including solar inverters, lithium-ion battery cells and packs, battery pack housing, and solar PV modules/panels for industrial use. The remaining 15% VAT and 2% advance income tax (AIT) meant that the effective tax burden remained at 17%.
Now, Internal Resources Division (IRD) through SRO No. 338 – Law/2026/88/Customs dated 16th September 2026, has gone a step further by waiving the remaining 15% VAT and 2% advance tax, while retaining a 1% customs duty. The facility will remain available for 180 days from the date of the order.
The NBR says the measure is intended to reduce the cost of solar power projects, accelerate the addition of new generation capacity, reduce dependence on fossil fuels and strengthen energy security.
For solar developers and importers, the immediate takeaway is clear, qualifying solar equipment can now enter Bangladesh at a substantially lower tax cost, potentially improving project economics and supporting faster renewable energy deployment.
