GOVT PROPOSES IMPORT DUTY AND SALES TAX EXEMPTION FOR RENEWABLE ENERGY

KUALA LUMPUR, Aug 29 (Bernama) -- The government has proposed import duty and sales tax exemption on solar photovoltaic system equipment for usage by third parties be given to importers in its move to widen the usage of energy from renewable sources.

The proposal also covered photovoltaic service providers approved by the Energy Commission, Prime Minister Abdullah Ahmad Badawi said when tabling the 2009 Budget in Parliament Friday.

The government also proposed sales tax exemption for the purchase of solar
heating system equipment from local manufacturers.

Previously, non-energy generating companies which import or purchase
equipment to generate energy from renewable sources for consumption by third
parties such as housing developers or building owners were not given tax
incentives.

For energy efficiency, exemption of import duty and sales tax be given for
equipment such as high efficiency motors and insulation materials to importers
including authorised agents approved by the Energy Commission.

The government said sales tax exemption be given for purchase of locally
manufactured energy efficiency consumer goods such as refrigerators, air-
conditioners, lightings, fans and televisions.

All the proposals are effective for applications received by the Finance
Ministry from tomorrow until Dec 31, 2010.
-- BERNAMA