• The Power Division in Pakistan refutes reports of fixed taxation on solar power, calling them misleading.
• No official proposal has been submitted to the federal government for imposing a tax on solar power.
• The existing subsidy of Rs 1.90 per unit benefits around 30 million underprivileged consumers.

Reports of potential taxation on solar panels for residential and commercial purposes in Pakistan stirred widespread concern. However, the government has now responded to these reports, providing clarification amid the confusion.

Contrary to earlier reports, the Power Division has refuted claims of a fixed tax on solar power, labeling them as misleading. According to the division, no official proposal has been presented to the federal government regarding the imposition of such a tax. Additionally, it highlighted the existing subsidy of Rs. 1.90 per unit, which currently benefits approximately 30 million underprivileged consumers. The division warned that if this subsidy were to continue, these consumers could face an additional burden of at least Rs 3.35 per unit. It emphasized that the growing adoption of solar panels aims to promote alternative energy sources in the country.

Furthermore, the Power Division stated that the government is actively evaluating the system and considering amendments to protect the poor from further financial strain.

Earlier reports suggested that the power agency proposed a tax of Rs 2,000 per kilowatt for solar setups with a capacity of 12 kW or above. Under this proposal, it was claimed that a 12-kilowatt solar panel setup would be subjected to a tax of Rs 24,000 if approved by the federal government.

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The government’s response aims to provide clarity and alleviate concerns regarding the taxation of solar power in Pakistan. As discussions continue, stakeholders await further updates on the matter.