TIB says waiving VAT on imported coal ‘suicidal’

Transparency International Bangladesh yesterday termed the government’s decision to waive 10 percent VAT on imported coal for coal fired power plant as “imprudent”.

In a statement, TIB Executive Director Iftekharuzzaman called upon the government to withdraw this “suicidal” decision.

“The government is saying that the decision is aimed at reducing production cost of electricity. But we are doubtful of whether the benefits will reach the common people,” said the statement.

Iftekharuzzaman said the government had earlier given such scope for furnace oil-based power plants. In reality, private stakeholders of those power plants pocketed the opportunities.  

“The government is creating a suicidal dependence on coal-based power plants,  arguing that they would make power affordable. The latest decision  is just a continuation of said dependence,” said Iftekharuzzaman.

He said such decision is in violation of the government’s national pledge and sustainable development goals, and contradictory to the Paris agreement.

“We know that the government made a pledge to increase production of renewable energy to 10 percent by 2020, but they have so far achieved only four percent at present,” said the TIB executive director.