Pakistani Government Planning to Imposes Tax on Solar Panels

The government of Pakistan has announced a tax on solar panels, both residential and commercial, at a rate of 2,000 rupees per kilowatt. The decision is being made as the installation of solar panels become popular in the country.

Details of the Tax

The tax will be applicable to solar panel systems of 12 kilowatts or above. It means that if a person or company installs a 12 kilowatt solar panel system, then they have to pay 24000 rupees as a tax. Central Power Purchasing Agency CPPA has submitted a narrative to the Ministry of Energy related to this tax proposal.

Potential Impact

Although the tax will generate money for the government it can also discourage the adaptation of solar solutions. People were switching to solar (in large number) because they don’t want to fully depend on conventional power sources and in some cases, they want to reduce their electricity bills as well. With this new tax, they might change their plans or slow down the conversion from non-renewable energy resources in Pakistan.