No Solar Panel Tax in Pakistan, Government Clarifies

  • No fixed tax on solar energy, including for individual households
  • Power Division dismisses reports of solar power fixed tax
  • Protection of investment for 150,000 to 200,000 net metering consumers
  • No tax on solar panel systems for domestic and commercial purposes

Contrary to recent reports, the Government of Pakistan has categorically denied plans to impose a fixed tax on solar energy, including on individuals who install solar panels on their homes for electricity.

The Power Division released a statement on Saturday, dismissing the news of a solar power fixed tax as baseless. The division confirmed that no such summary has sent to the government for approval.

The Net Metering Policy of 2017 introduced to promote alternative energy in the system, and the Power Division aims to protect the investment of 150,000 to 200,000 net metering consumers. The division is considering proposals and amendments to shield the poverty-stricken from further burden.

Earlier, local media reported that the Central Power Purchasing Authority (CPPA) had proposed a tax on solar panel systems for domestic and commercial purposes. The reported tax of Rs2,000 per kilowatt would have discouraged people from shifting to solar energy.

The Power Division has assured that there is no truth to these reports, and no such tax will imposed on solar panel users.

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