According to the proposed budget, the government is likely to reduce the duty on bottled Liquefied Natural Gas (LPG) to encourage its domestic use. To encourage the usage of renewable energy, the duty on
solar system is also to be declined. On the other hand, coal price of Barapukuria is about to be increased.
Finance Minister AMA Muhith proposed a budget with an allocation of Tk 150.35 billion for the country’s power and energy sector for the fiscal year (FY) of 2016-17 in the Parliament on Thursday.
Like the previous fiscal year’s budget, the minister proposed to keep the import of capital products duty free. Besides, duty on equipment associated to biogas-plant, as an instance- stove, air tight storage
bag with zipper, biomass digester and cylinder made of plastic and glass is seemingly to be rebated in the coming fiscal year.
The duty on LPG cylinder (plastic and glass fiber) is proposed to be reduced from 25 to 10 percent. In addition, the tariff of importing biomass stove is proposed to be reduced from 25 to 15 percent.
Depending on specific cases the price of coal from Barapukuria is planned to be increased from a range of 20 to 25 percent.
The government planned to rebate the VAT (Value Added Tax) on the hard rocks from madhypara’s hard rock mine by 15 percent, so that the rock can be used in Padma Bridge like mega projects.
According to the budget proposal the duty on Urea Resin is likely to be reduced from 25 to 15 percent. Again the tariff on Dioctyl phthalate (DOP), rolling adhesive tape (more than 20 cm), rolling
adhesive tape (less than 20cm), fiber glass, compressor parts is possibly to be reduced from 20 to 10, 25 to 15, 10 to zero, 30 to zero and 25 to 5 percent respectively.
However, it is planned to soar the duty on lamp holder from zero to 10 percent while the tariff on cable connector is also about to be increased by 10 percent according to the proposed budget of FY 2016-17.