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Senegal government exempts VAT on renewable energy production equipment

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The government of Senegal has, by interministerial decree, exempted the Value Added Tax (VAT) on a list of twenty-two (22) materials used in the production of renewable energy from solar, wind and biogas sources.

The list of equipment intended for the production of exempt solar energy concerns the photovoltaic solar panel, the solar thermal collector or panel, the solar inverter, the solar battery, the solar water heater kit, the charge controller, the solar light kit, the solar street light including solar panel, controller battery and lantern as well as the solar pumping kit including the solar panel, controller and pump.

For equipment intended for the production of wind energy, the exemption from the value added tax  includes the tower, the blade, the rotor, the nacelle and the hub, informs the press release of the Ministry of Petroleum and Energies which arrived this Monday, 3 August 2020 at APA (African Press Agency).

As regards to the materials intended for the production of electricity and heat from biogas, the note continues, this is the biogas stove, the biogas flow analyser, the prefabricated bio digester, the biogas pump, desulfurisation apparatus, water trap, biogas generator set and substrate mixing apparatus.

The objective of these measures taken by the government is to substantially lower the acquisition costs of this equipment (18%) to facilitate access to energy and particularly to electricity, in rural areas. They come within the framework of the policy of universal access to electricity by 2025, reduction of greenhouse gas emissions and promotion of renewable energies, underlines the note.




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