Govt gives huge relief to Solar System users in Pakistan

ISLAMABAD: The federal government has given a huge sigh of relief to solar system users by deciding to temporarily postpone the 16% General Sales Tax levied on electricity produced through solar panels.

The revision request on GST for solar power users has been approved, which brought relief to the residential and commercial segments installing solar systems.

President Asif Ali Zardari accorded approval to the reconsideration and referred the case back to the Federal Tax Ombudsman for review. Earlier, all distribution companies had filed appeals against the tax.

Tax implementation had been causing heavy financial burdens on solar consumers. Earlier, in February, the Federal Tax Ombudsman had issued orders to collect the tax, which are under review following the government’s latest decision.