Solar Tax in Pakistan: Power division denies reports regarding tax on users

ISLAMABAD: Amid reports of tax imposition on individuals using solar panels, the Power Division has denied any such report of fixing tax on solar power on Saturday.

According to the statement, there is no truth in this news as the Central Power Purchasing Agency (CPPA) or Power Division has not sent any such summary to the government. Rich people are installing solar panels in abundance, it said.

Furthermore, the Power Division said that the government along with domestic and industrial consumers is paying the burden of Rs 1.90 in the form of a subsidy, as a result of which about 3 crore poor consumers are being affected. This Rs 1.90 is going out of the pockets of the poor and into the pockets of the middle and rich class, it added.

It was said that if this trend continues, the bills of poor consumers will increase by at least 3.35 rupees per unit.

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“The Net Metering Policy of 2017 was aimed at promoting alternative energy in the system. After 2017, there has been such a phase in which solarization has increased rapidly,” the statement added.

The Power Division emphasized that the government is considering several proposals and amendments including new rates to save the poor from further burdens  The investment of users with net metering of 1.5 to 2 lakh will be protected, it said.

Yesterday, reports emerged that the federal government is considering a proposal to levy tax on individuals installing 12KW and above solar panels. According to reports, the administration is also thinking about lowering the rate for net metering.

There is a plan to charge people who install 12 kW residential or commercial solar panels. It is intended to tax residential or business solar users of 12 KW or more solar panels equal to Rs. 2000 per kilowatt. It means that Rs 24,000 will be charged to customers installing 12KW solar panels, the source explained.