Central Power Authority Proposes Tax on Solar Users

The Central Power Purchasing Authority (CPPA) in Pakistan has recommended imposing taxes on individuals and businesses adopting solar panel systems for electricity generation. This proposed tax seeks to levy Rs2,000 per kilowatt on solar panel users, potentially hindering the transition towards solar energy.

Impact on Solar Panel Owners

If implemented, the tax would apply to systems with a minimum capacity of 12 kilowatts, translating to a tax of Rs24,000 on a 12kw solar panel grid. Such taxation may deter individuals and businesses from investing in solar energy solutions, impacting the growth of the solar energy market in Pakistan.

Government Review and Considerations

The Power Division has forwarded the CPPA’s proposal to the Prime Minister for approval, indicating the government’s contemplation of this taxation measure. Additionally, discussions are underway regarding potential revisions to the pricing structure of solar panels, further shaping the solar energy landscape in the country.

Pakistan’s deliberation on taxing solar panel installations reflects broader considerations surrounding green energy policies and solar technology developments. As stakeholders assess the potential impacts and implications of such taxation, the future trajectory of solar energy investment and market trends remains subject to government decisions and regulatory measures.

Source：en.dailypakistan.com.pk