Sri Lanka’s renewable power sector is not paying a single cent as taxes.
“In many sectors taxes have gone up,” Perera told parliament. “But in renewable, especially solar and wind, taxes are zero”.
“I have to thank Minister Ravi Karunayake for this policy which he started when he was finance minister”.
“This was one of the most important steps take to promote the renewable sector in Sri Lanka. As a result not a single tax is charged on solar panels or other related equipment.” He said the policy had helped connect close to 200MW of power to the grid. About 250 new companies had started in the sector and 10,000 jobs have been created,” Perera said. “We are proud of that.” “Five 10 MW plants for which licenses were issued also went ahead because of the tax free policy.”
He said the private sector has invested in excess of 200 million dollars in renewable sector in Sri Lanka with no government money being used.
A 50 million dollar credit from Asian Development Bank is being used to give loans at 8 percent to rooftop solar. State-run National Savings Bank was also giving subsidized credit to customers of Lanka Electric Company.
Perera said several wind plants also went ahead due to tax free status.
Credits : EconomyNext