Source: ocef.bj
As part of the acceleration of access to energy for rural and peri-urban populations, fiscal policies such as exemption from taxes and import duties constitute an essential axis to support the development of solar energy projects.
Thus, the Beninese government has just taken in the 2020 finance law tax relief measures for the import and purchase of electrical equipment. The 2020 Finance Law stipulates that: "are now permanently exempt from Value Added Tax (VAT):
materials and equipment for the production of solar energy (thermal and photovoltaic) as well as installation accessories, excluding inverters, imported or acquired in the Republic of Benin;
other categories of electrical equipment and materials imported or acquired in the Republic of Benin and intended for rural electrification projects".
Enterprises in the energy sector now benefit from exemption from the VAT levied on the importation of materials and equipment necessary for the implementation of solar projects. These provisions apply to solar panels and other ancillary equipment essential for installation such as lamps, electric wires and especially batteries, which account for about 30% of the cost of solar electrification projects.
These tax relief measures provide savings for businesses and households; and act as an incentive to make the energy sector attractive to private investment. In addition, these advantages granted to importers and sellers of electrical materials and equipment are intended to encourage the deployment of solar energy projects and increase access to energy in rural and peri-urban areas in Benin.
Investments in the energy sector are largely dictated by regulatory policies such as pricing instruments, supported by fiscal and financial incentives. Thus, to accelerate the continued expansion of solar energy for the benefit of people in rural and peri-urban areas of Benin, it is essential that the government follow up on these measures to ensure their effective implementation on the ground.
