Supporting the Policy Enabling Environment for Development

Tariffs and VAT on Energy Equipment

DFID commissioned a study to analyze the costs and benefits of removal of Value Added Tax (VAT) and import duties on solar photovoltaic (PV) lanterns, solar home systems and improved cook stoves.  We will discuss the impact of VAT and import duties on the cost of renewable energy and energy efficiency equipment in presentations at conferences and in training that we provide to energy stakeholders. We will talk with DFID and USAID about the potential to review the study and explain its ramifications and model to non-economists at MIREME or to extend the study to address additional questions or concerns. SPEED+ will also consult with a wide array of appropriate stakeholders such as the International Monetary Fund (IMF) and the Tax Authority about the possibility of implementing VAT and tariff exemptions given the current economic crisis.