Solar Energy Tax Issue Echoes in Senate

ISLAMABAD: The Pakistan People’s Party (PPP) on Monday raised a matter relating ‘imposition’ of tax on individuals using solar panels for residential or commercial purposes in the Senate, ARY News reported.

According to the details, PPP’s Senator Palwasha Khan in her speech said that news has emerged that the government is planning to impose a tax on solar energy consumers.

She said that in the wake of a hike in electricity prices, people sold their belongings to install solar panels.

PPP’s Senator Sherry Rehman responded that the Power Ministry already gave an explanation and refuted the reports. “It should be found out who has spread this news,” she demanded.

Read more: Govt proposed to impose tax on solar energy consumers

Earlier on Friday, it was reported that the Central Power Purchasing Agency (CPPA) has proposed the federal government to impose a tax on individuals using solar panels for residential or commercial purposes

The sources privy to the development said that the CPPA has proposed a tax of Rs 2,000 per kilowatt on residential and commercial consumers installing 12 kilowatts or more.

The CPPA’s recommendation, which was sent to the Ministry of Energy (Power Division) for approval, has now been forwarded to Prime Minister Shehbaz Sharif for final approval.

After the prime minister’s approval, the consumers who install 12 kilowatt solar panels will have to pay a tax of Rs 24,000, according to the reports.

Meanwhile, the Power Division on Saturday refuted reports regarding the imposition of a fixed tax on solar power, terming them as baseless and misleading.

In a statement, the Power Division clarified that no such summary has been sent to the government regarding the imposition of a fixed tax on solar power.

The Power Division stated that the subsidy of Rs 1.90 per unit is borne by the government, which is affecting around 2.5 to 3 crore poor consumers and is putting an undue burden on them.