Tax Reduction for Renewable Energy Equipment

New budget provisions allow purchasers of renewable energy equipment, such as solar panels for residential use, to benefit from a reduced VAT of 5%. Investment costs in renewable end-use technology were deductible from the income tax with a limit to the deduction set at PTE 50 000 in 2000. Beginning in 1999, investors in equipment using solar energy are entitled to claim a depreciation rate of 25% (previously set at 7.14%).