Govt to levy 12% import duty on furnace oil
The government has suggested imposing 12% import duty on the furnace oil after nine years, which was awarded waiver in 2011.
In the proposed budget for FY2020-21, Finance Minister AHM Mustafa Kamal made the proposal before the Parliament.
To expand the electricity generation capacity, the import duty on furnace oil was waived in 2011 to encourage the establishment of furnace oil-based power plants in the country.
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Over the years, the country has now become saturated with huge production capacity.
Besides, many power plants built on alternative fuel remained idle for which the government had to pay Tk9000 crore capacity payment penalty.
Around 50 percent of the country's total electricity generation capacity was built on oil-based plants.
Currently, the country's total electricity generation capacity is around 19,600 megawatts.
