The Cabinet has approved a proposal to provide a six-month duty and tax exemption facility for importing machinery and equipment required to set up renewable solar power plants.

The approval was given at the 20th Cabinet meeting held at the Cabinet Room of the Jatiya Sangsad Bhaban on Monday (September 7).

The Cabinet Division disclosed the decision in a press release issued on Monday night.

Under the proposed facility, machinery and spare parts imported for establishing renewable solar power generation plants will be exempted from customs duty exceeding 1 percent, regulatory duty, supplementary duty, value-added tax (VAT), advance tax and advance income tax for 180 days from the date of issuance of the relevant notification.

According to the press release, the measure is expected to help reduce public suffering caused by electricity shortages, keep industrial production running, lower production costs and minimise damage to machinery.

The government also expects the incentive to have a positive impact on investment and overall economic activities.