Pakistan temporarily suspends GST on solar-generated electricity

ISLAMABAD: The federal government of Pakistan has temporarily deferred the General Sales Tax (GST) imposed on consumers generating electricity through solar systems.

As per the details, President Asif Ali Zardari has approved a request for review of the 16 percent sales tax imposed on solar consumers.

The president has sent the case to the Federal Tax Ombudsman for reconsideration. All power distribution companies had earlier filed appeals challenging the decision.

This tax was imposed on electricity generated through solar systems, resulting in a significant financial burden on consumers.

The Federal Tax Ombudsman had ordered the collection of the tax in February this year, but after the government’s latest instructions, this instruction will now be reconsidered.