National Board of Revenue (NBR) has agreed to cut 20 percent tax and VAT on the import of coals to feed the 18 large power plants with a view to reducing the overall power generation cost.
The authority has taken the decision after a meeting with the Power Division last week, said an official.“NBR has so far collected 25 percent tax and VAT………Now it decides to slash the duties which will be five percent only,” the official said, asking not to be named.
He added that Payra power plant will enjoy the facilities for the first times as it is likely to start electricity generation in December, 2019.
The plant will get the facilities till 2025 and the tenure might be extended subject to apply for the coal-fired plants, NBR sources said.
Later, public and private power plants will get the same facilities subject to apply for coal-fired plants at Moheskhal, Matarbari, Rampal, Banchkhali, Munshiganj and Barguna.
The proposed coal-based power plants will require around 56 million tons of coal annually to produce 18392MW of electricity, official said.
The LNG as well as the fuel import for producing electricity will enjoy the same facilities.“Our electricity generation cost may come down partially if the government allows tax, VAT exemption for the import of coal for power generation,” Coal Power Generation Company Ltd of Bangladesh Managing Director Golam Kibria told daily sun.
Bangladesh-China Power Company Limited (BCPCL) signed a deal with an Indonesian firm in June last to import four million tonnes of coal per year for 1320MW coal-fired Payra Power Plant in Patuakhali.
BCPCL signed the agreement with PT Bayan Resources Tbk, Indonesia, to feed the Payra 1320 MW Thermal Power Plant.
The plant will be operated by the imported sub-bituminous coal. Its calorific value is about 4700-5500 Kcal. This type of coal is largely abundant in Indonesia and Australia. At the initial stage, coal will be imported from Indonesia. “We are willing to import 4 million tons of coal annually for 10 consecutive years to feed the coal fired power plants,” said Bangladesh-China Power Company Limited (BCPCL) Managing Director Engineer AM Khurshedul Alam while talking to daily sun.
The private importers imported 57.54 lakh tons of coal in FY 2018-19 which was 34 lakh in previous year with a revenue of TK600 crore.
The government has set a target to generate 18,392MW electricity from coal-fired power plants.
Of the electricity, some 5040MW will come from public power plants.