Green energy research report calls for GST cut on hydropower, wind projects
A study by the Institute of Energy Economics and Financial Analysis (IEEFA) and JMK Research has listed out a series of recommendations for the country to reach its target of 500 gigawatts (GW) of renewable energy capacity by 2030.
A slash in Goods and Services Tax (GST) on hydropower and wind projects features among the top suggestions to ease the strain on developers' balance sheets and increase affordability.
It suggests that GST applicable on hydropower project components should be lowered to 12 percent from 18-28 percent levied at present and the GST on wind projects should be reduced from 12 percent to 5 percent.
It has also asked to maintain the tax rate on the energy storage sector below 5 percent for the next five years. "A 5 percent lower GST rate should be applied to the sale of Battery Energy Storage Systems (BESS) integrated systems and BESS components—batteries and cell modules—for the next five years," it said.
