NBR says no to duty waiver for 3,600MW power plant

FT ONLINE

The proposed 3,600MW LNG-based power plant at Moheskhali in Cox’s Bazar will have to pay customs duty and taxes for importing capital machineries, NBR informed the Power Division recently.   

State-owned Bangladesh Power Development Board (BPDB) and US energy giant General Electric (GE) will implement the proposed power project in joint venture.

The tax authorities came up with the response after the Power Division sought opinion of NBR whether the existing statutory regulatory orders (SROs) will allow the mega power plant to enjoy the tax benefits.

“The project materials, machineries, tools and equipment imported for project implementation shall be subject to payment of customs duty and taxes applicable as per the custom Act, 1969,” NBR second secretary Md Sultan Ahmed said in reply to the Power Division.  

A PDB high official said the existing SROs created confusions over the applicability of tax and duty benefits to the power plant projects.

The NBR in its letter further said only foreign experts and consultants who are direct employees of ‘international organization’ or ‘development partner of Bangladesh’ specified in SRO No-237-Law/2003/2015/Cus. Dated 02-08-2003 will be allowed the facilities and concessions admissible under that SRO as privileged persons.

Other foreign nationals employed in the project will not be entitled to any facilities to concessions, said the NBR.