The Cabinet on Monday approved sweeping duty and tax exemptions on the import of machinery and spare parts for renewable solar power plants.
Chaired by Prime Minister Tarique Rahman at the Jatiya Sangsad Bhaban, the Cabinet cleared the proposal to exempt imported solar equipment from all regulatory and supplementary duties, value-added tax (VAT), advance tax and advance income tax for 180 days. Customs duty exceeding 1% will also be waived.
According to the Cabinet Division this initiative aims to accelerate renewable energy expansion, alleviate power shortages and ensure uninterrupted industrial production.
In a separate move to curb the illegal tobacco trade and boost national revenue, the Cabinet approved an amendment resetting the maximum retail price of low-tier cigarettes to Tk 65 or above per 10 sticks with replacing the existing Tk 62 threshold.
Additionally the government greenlit a Promotion and Protection of Investment Agreement with Hong Kong. Valid for 10 years with a provision for amendment after three years the pact seeks to strengthen economic ties and attract foreign direct investment particularly in Bangladesh's crucial garment and textile sectors.
The agreement guarantees mutual investment security and aims to foster job creation, technology transfer and industrial growth.
