Although it is said that the cut will reduce the cost of power generation, the rights group called upon the government to ensure that its benefits will eventually reach the general people. On Wednesday, NBR reduced VAT on the import of coal for power plants to 5% from existing 15% for five years until June 2025 to allow electricity generation at lower costs. Iftekharuzzaman said: "This latest decision of VAT exemption is a continuation of suicidal dependency on the argument that electricity is being made available from coal plants at the most affordable price. "We know that the government is committed to produce renewable electricity by 10% of the total production by 2021, while at present it is less than 4%. On the other hand, the use of renewable fuel will be discouraged, he said, urging the government to withdraw such a suicidal decision.

Source: Dhaka Tribune December 07, 2019 15:11 UTC