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Tax on solar panels, how much tax will consumers have to pay

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Solar Panel Tax: The government of Pakistan is considering imposing a tax on residential and commercial solar panel users.

The tax on solar panels has become a hot-button issue in Pakistan as the government has previously promoted solar energy to reduce dependence on oil-based energy. This is the reason that people have started installing solar panels for free for their residential and commercial purposes but the imposition of tax discourages them.

A day earlier, reports emerged that the Central Power Purchasing Agency (CPPA) has proposed to levy a tax on residential and commercial consumers. The federal government has not yet decided on this.

Read more: Forced to sell wheat on streets, farmers’ organizations call for protest

Which solar panel customers will face the new tax?
According to the proposal, this tax will be imposed on consumers who install a solar panel system with a capacity of 12 kW and above.

A per kilowatt tax is proposed on solar panel systems
The agency has asked the government to collect a tax of Rs 2,000 per kilowatt from those installing solar setups of 12 kilowatts or more.

Proposed total tax on 12 kW solar panel setup
The 12 kW panels will pay Rs 24,000 tax if the federal government accepts the proposal.

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