Why tax changes may power down green energy investments

Investors in the energy sector enjoy various incentives including a zero rate of import duty and value-added tax (VAT) exemption on renewable energy equipment; exemption from tax on interest paid on loans from foreign sources; exemption from payment of stamp duty in respect of certain instruments; and exemption from withholding tax on payments made to a non-resident for specific services rendered under a power purchase agreement.

In the wake of the Covid-19 pandemic, the government proffered a stimulus package which included concessionary tax rates. It was the hope of many that this stimulus package would help affected businesses ride the storm and the energy sector players were among those waiting to partake of the government’s liberality.

Read more: Business Daily



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