Federal govt temporarily suspends GST on solar

ISLAMABAD: The Federal government temporarily suspends the general sales tax on solar consumers.

The federal government has temporarily suspended the 16 percent general sales tax on consumers who generate electricity with solar systems. The government took this decision after the review petition filed by solar consumers was approved.

The President, while accepting the appeal related to solar GST, has sent the case to the Federal Tax Ombudsman for rehearing.

The President directed that the Federal Tax Ombudsman should conduct a detailed examination of the matter afresh.

All electricity distribution companies filed an appeal against the Federal Tax Ombudsman’s decision, after which the tax was imposed on consumers using solar systems.

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As a result of this tax, consumers had to pay heavy payments, which was being expressed serious concerns.

The Federal Tax Ombudsman had issued a tax recovery order in February this year; however, the President approved a review petition filed this month, approving a review of the tax implementation and a fresh hearing.