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Govt Set to Impose Huge Tax on Solar Panel Users

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Legal Editorial Desk
Govt Set to Impose Huge Tax on Solar Panel Users
The Central Power Purchasing Agency (CPPA-G) has suggested the government to impose a tax on both residential and commercial consumers who have installed solar systems. Sources told ProPakistani that the CPPA-G has sent a summary in this regard to the Ministry of Energy (Power Division). CPPA-G has proposed imposing a tax of Rs. 2,000 per kilowatt on both residential and commercial solar panel users. According to sources, users using 12-kilowatt panels will have to pay tax to the tune of Rs. 24,000. The ministry has sent the summary to the prime minister for approval. Sources further said that the summary for rationalization of buyback rates of net metering electricity is also under consideration. Once the summary is approved, an application will be lodged with the National Electric Power Regulatory Authority (NEPRA) to decrease the buyback rates of net metering electricity.
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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