NBR has confirmed that industrial users can continue to import solar equipment at a 1% import duty under the capital machinery facility, after customs stations imposed a 17% duty following a misinterpretation of a new SRO.
The National Board of Revenue (NBR) has clarified that industrial users can continue to import solar equipment at a 1% import duty under the capital machinery facility, resolving confusion over a statutory regulatory order (SRO).
The clarification, issued on 17 August 2026, followed concerns from businesses after customs stations charged 17% import duty on some solar equipment instead of the previously applicable 1%. The NBR said the new SRO did not withdraw the 1% facility for industrial users, while other users, including commercial users, will face higher duties.
An NBR official said the government had introduced additional benefits for solar equipment in the latest budget but had not withdrawn existing facilities. The official said misinterpretation of the SRO by field-level officials, including customs valuation officials, had led to the higher duty being imposed. “After this clarification, the issue will be resolved,” he added.
Business community sources said many importers had held back consignments after the higher duties were applied, creating complications for businesses. They said the clarification had addressed the immediate issue but should have been issued earlier.
Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), said the clarification had resolved the import duty issue for industrial users for now. He noted that import duty on some solar equipment remains high, with rates for certain inverters reaching 28% and duties on batteries exceeding 50%.