HomeBusinessProposed Tax on Solar Panels for Homes and Businesses in Pakistan

Proposed Tax on Solar Panels for Homes and Businesses in Pakistan

Here’s a breakdown of a recent proposal in Pakistan regarding solar power:

  • The Issue: The Central Power Purchasing Agency (CPPA) has suggested a tax on people who use solar panels for their homes or businesses (residential and commercial).
  • The Tax Details: This proposed tax would be Rs. 2,000 per kilowatt and would only apply to those installing 12 kilowatts or more of solar power.
  • The Approval Process:
    • The CPPA’s proposal has been sent to the Ministry of Energy for review.
    • If approved by the Ministry, it would then need final approval from Prime Minister Shehbaz Sharif.
  • The Impact:
    • If implemented, this tax would mean someone installing a 12-kilowatt solar system would pay an additional **Rs. 24,000 (tax)`.
  • Potential Price Reduction: The government is also considering ways to reduce the overall cost of solar panels.

Additional Information:

  • This news comes alongside a plan by Sindh province to switch its jails to solar power. This initiative aims to use solar energy to run fans in prison barracks.

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