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Reading: Government Tax on Solar Net Metering: Are New Charges Imminent?
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Pakistan budget 2025-26
PhotoNews Pakistan > Business > Government Tax on Solar Net Metering: Are New Charges Imminent?
Business

Government Tax on Solar Net Metering: Are New Charges Imminent?

Web Desk
By Web Desk Published May 16, 2024 1 Min Read
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Workers installing Solar Panels. Photo Credit: Getty Images
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Federal Minister for Power Division Awais Leghari clarified that the government has no intention of imposing taxes on solar net metering.

The Federal Minister confirmed, “There will be no changes to the regulations for existing solar installations regarding net metering.” However, Leghari acknowledged that the issue might be revisited in the coming years due to potential fiscal impacts and the possibility of increasing the circular debt.

Is govt imposing tax on solar net metering?#ARYNewshttps://t.co/HD0afwMaqF

— ARY NEWS (@ARYNEWSOFFICIAL) May 15, 2024

What Is Next Metering?

Net metering is a billing system that credits solar energy system owners for the electricity they contribute to the grid.

Addressing the challenges of capacity payments, the minister outlined reforms planned over the next four years to enhance the transmission system. He advocated the adoption of solar power to alleviate the load on the national power generation system.

No proposal for imposing any tax on solar panels on the table. Period.

No summary has been initiated by CPPA or by the Power Division. Period.

Taxing a product is not even the mandate of CPPA G. It belongs to FBR.

Net metering regime as practiced today unduly punishes… https://t.co/4EBV6MZzu6

— Khawaja M. Asif (@KhawajaMAsif) April 29, 2024

Efforts are underway to enhance customer service at distribution companies, combat power theft, and enforce strict measures against pilferage, Leghari emphasized. He committed to a policy of zero tolerance towards lapses in service delivery.

Further, Leghari indicated potential privatisation plans for certain departments, with preparations for long-term operational management contracts underway. He noted that privatisation would follow these departments’ enhancement in value.

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