Dr Atiur Rahman, economist and former governor of the Bangladesh Bank, said that the government should cut import duties on solar energy systems like solar panels and inverters to ensure the growth of the renewable energy sector.

“We should remove duties and taxes imposed on such solar inputs so that the cost of installing solar systems is reduced by 8% to 11% with the intention of promoting solar energy in Bangladesh,” he told a seminar on Monday.

Unnayan Shamannay organised the pre-budget seminar on ‘favourable tax policies for renewable energy sector in national budget’ at its head office in the capital.

In his speech, Dr Atiur appreciated the target of Prime Minister Sheikh Hasina to generate 40% electricity from clean energy by 2041.

Bangladesh is targeting 40% of power generation from clean energy in phases by 2041. Around 4,000 megawatt electricity will come from solar energy by 2030, according to the government's energy master plan.

Khondkar Morshed Millat, a faculty of Bangladesh Institute of Bank Management (BIBM), Dhaka University’s Institute of Energy Director Dr Nasif Shams and renewable energy entrepreneur Dipal C Barua were also present at the discussion.

Addressing the seminar, Morshed Millat pointed out that without the right set of tax incentives, solar energy entrepreneurs will not be able to capitalise on the available green finance from commercial banks and NBFIs.

Dr Nasif Shams mentioned that tax incentives must be ensured to reduce prices of solar energy systems which in turn will increase the demand for solar energy in Bangladesh to a significant extent.