BSS) - The Cabinet today approved a proposal to provide customs duty and tax exemptions for the import of machinery and equipment required for setting up renewable solar power plants.

The approval came at the 20th Cabinet meeting held at the Cabinet Room of the Jatiya Sangsad Bhaban with Prime Minister Tarique Rahman in the chair.

Under the approved proposal, machinery and parts imported for renewable solar power plants will be exempted for six months from the date of issuance of the relevant notification from customs duty exceeding one percent, regulatory duty, supplementary duty, value-added tax, advance tax and advance income tax.

The measure is expected to facilitate faster installation of solar power plants, help meet growing electricity demand, reduce power shortages, support uninterrupted industrial production, lower production costs and reduce damage to machinery, while having a positive impact on investment and economic activities.

The Cabinet also approved a proposal to amend two notifications under the Value Added Tax and Supplementary Duty Act, 2012, concerning the minimum price of low-tier cigarettes and the use of stamps and banderols.

Under the amendment, the maximum retail price of low-tier cigarettes will be reset at Tk65 and above per 10 sticks, replacing the existing threshold of Tk62 and above.

The measure is expected to help curb illicit trade in low-tier cigarettes and reduce revenue losses.

The Cabinet further approved a proposal to sign a Promotion and Protection of Investment Agreement between Bangladesh and Hong Kong.

Hong Kong is one of the world`s developed and open economic regions, while it ranks sixth among the sources of foreign direct investment in Bangladesh.

The proposed agreement is expected to strengthen existing economic ties between the two sides and help attract new investment, particularly in sectors including garments and textiles.

It will also help promote industrialisation, employment generation, technology and knowledge transfer and enhancement of production capacity by ensuring necessary security and protection for investments from both sides.

The agreement, once signed, will establish an institutional framework to facilitate increased foreign investment flows between Bangladesh and Hong Kong and contribute to expanding trade and overall economic cooperation.

The agreement will remain valid for 10 years, with a provision allowing the two sides to amend it three years after its signing.