High Solar Import Duties Menace RMG Sector’s Green Gait

The country's ready made garment (RMG) industry, conducting export earner, is pushing towards sustainable to meet world environmental agreement . However, growing import duties on solar materials are creating a major hurdle, making rooftop solar installations costly and slowing down the shift to renewable energy. Industry leaders stress that without emergency policy support, Banglades.

The RMG sector, which added over 80% of the country’s foreign  earnings, has been investing strongly in renewable energy solutions to shorten carbon emissions. The government target  to surge  the share of renewable enery to 20% by 2030, up from the current 5%.

Specialist  believe that growing  rooftop solar facilities could help Bangladesh save around Tk2,500 crore annually by decreasing  fuel imports. Meanwhile , industry workmen  says that the high tax  fardel on solar imports is losing  investment and slowing down large-scale adoption.

Cost Pressure from High Import Taxes

Building  up industrial rooftop solar systems include  at least 13 different elements  , involving  solar panels, inverters, batteries, and mounting structures. While only 1 % tax bears  on panels and inverters. On the other hand many other critical elements  are taxed on as high  62% to 77%, making fixing  costs importantly  higher than in besides countries.

As reported by  industry assumed , solar project costs in country  are 30% to 50% higher than in India, making local manufacturers less competitive in whole world .

Industry Leaders Voice Concerns

In opinion of  NZ Textile Limited, which is one of the largest textile mills in the country, has already  set up 10 megawatts of solar capacity.  the highest among local textile factories  and plans to increase it to 30 megawatts.

 Managing director of its , Saleudh Zaman Khan, said:  > “Taxes on  overseas sourced solar equipment have increase  our costs by more than 30%. A work that would cost Tk2 crore in India ends up costing us Tk3 crore here. This additional   burden limits our ability to race  internationally.”

As per as same , Fatullah Fashions Limited, a USGBC platinum-certified green garment factory in Narayanganj, is targeting  for net-zero carbon emissions within five years. Its managing director, Fazlee Shamim Ehsan, said:

> “By manufacturing   electricity through solar, we save many  foreign currency. The government should appreciate  such initiatives by reducing import duties and providing subsidies

Financing Hurdles and Policy Gap

Though  central  Bank has set up a green financing fund  lending  low-interest loans for renewable projects, investors complain about complex procedures, lengthy approvals, and inadequate financing support.

In addition  to the frustration, fossil-fuel-based private power producers enjoy full import duty exemptions (except for a 5% VAT) under a National Board of Revenue (NBR) circular, while renewable energy users are excluded from such benefits  a policy contradiction that industry leaders find alarming

Call for Policy Reforms

Industry stakeholders utter  that Bangladesh must  think again on  its tax policies to meet its renewable energy targets and standstill  competitive in global markets. Their key recommendations include:

Reduce  high import duties on solar equipment

Giving  subsidies and tax incentives to boost renewable investments

Easing access to green financing and simplifying approval processes

Make ensure  cost competitiveness with regional rivals like India and Vietnam

Specialist   warn  that without these reforms, Bangladesh may fall lack behind  in the global green transition potentially hurting exports, as international buyers increasingly demand sustainable supply chains.