The National Board of Revenue (NBR) has relaxed rules to extend the income tax exemption facility to private coal-fired power producers by 15 years if they start electricity generation by June 30 next year.

Earlier, the NBR offered the exemption to the producers that could begin producing electricity by June 30 this year.

The extension comes following recommendations from the power, energy and mineral resources ministry as most of the power plants failed to go into production by the deadline, said a senior official of the NBR.

Producers that signed agreements by June 30, 2020 to establish power plants will qualify for the tax waiver for 15 years from the start of the commercial operation.

And the exemption can be enjoyed until June 30, 2039, according to a notification of the NBR issued on October 3.

The revenue board will also exempt income tax of foreign employees employed at the plants for three years.

The concession will also be applicable for the interest payable on foreign loans secured by the companies, the expenditures used to pay royalties and technical know-how and technical assistance fees as well as the profits earned from transferring the shares of producers.

In another notification on June 19, the NBR extended a tax holiday by 12 years on the income for the plants other than privately-run coal-fired power units. However, they will have to begin producing electricity before June 30 next year.

The extension will give them tax exemption until 2036.

The tax break has been offered since 2011 to support the government's goal of expanding the country's energy production capacity.

Installed capacity totalled 27,834 megawatts last month, more than five times higher than the 4,942 MWs in 2009, data from the power division showed.