Bangladesh’s National Board of Revenue (NBR) is mulling a plan to extend tax exemption facility for coal-fired power plants until 2020.
The tax exemption is expected to attract investments in related projects, which will use alternative fuel and will reduce dependence on gas, reported The Financial Express.
NBR will offer the tax benefit to the plants that will be able to start power generation within the specific time.
As part of the plan, the private producers will receive tax holiday for 15 years from the date on which the generation of power commences at their respective units.
A senior NBR official was quoted by the news agency as saying that the facility is likely to be included in the budgetary proposals for the upcoming fiscal, 2013-14.
The official noted that the present option for the private power producers, which will expire on 30 June 2013, is likely to be extended until 2016 for other power producers.
"For the coal-fired power plants, the facility will be extended until 2020, while it will be in place for all until 2016," the official said.
Bangladesh has an estimated 2.5 billion tonnes of coal deposit in five coal-mines at Barapukuria, Phulbari, Jamalganj, Khalaspir and Dighapara.