According to the proposed tax rate proposed in the national budget for the fiscal year of 2017-18, prices of LPG (Liquefied Petroleum Gas) is likely to go down while prices of solar panels will rise on the other hand.
The prevailing VAT rebate on the local production of LPG has a validity till 30th June 2017 which is now proposed to be extended to 30th June 2019 in this proposed budget accounting the importance of the LPG in the country’s energy sector.
On the other hand, the regular usage of solar panels in the country at a mass scale is not that new. Bangladesh used to import all the major equipment of the solar panels which destined the tax rate to zero on importing them. Nowadays, local entrepreneurs are making those solar panels or modules in our country at a large scale using photovoltaic cells. According to the proposed budget for the fiscal year of 2017-18, locally made solar modules or panels will fall under a 10 percent tax rate which was previously 5 percent. However, tax on the solar photovoltaic cell will remain zero