Sindh’s Energy Minister, Nasir Shah, strongly opposes the proposed solar panel taxation.
Nasir Shah emphasized that such a move would disproportionately affect the less affluent segments of society. “Certain quarters have recommended the tax on solar panels to the federal government. This step will further overburden the poor class,” Shah stated, highlighting the potential economic impact on vulnerable populations.
The minister appealed directly to the Prime Minister, urging him to avoid imposing such taxes. He also proposed that the government introduce convenience packages to facilitate the public’s purchase of solar panels.
The Central Power Purchasing Agency (CPPA) has suggested to the federal government that a tax be levied on individuals using solar panels for residential or commercial purposes.
Sources familiar with the matter revealed that the CPPA had recommended a tax of Rs 2,000 per kilowatt for users installing 12 kilowatts or more systems.
This recommendation from the CPPA has been sent to the Ministry of Energy (Power Division) and subsequently forwarded to Prime Minister Shehbaz Sharif for final approval.
Should the Prime Minister approve, consumers installing 12-kilowatt solar panels will face a tax of Rs 24,000.
Concurrently, the federal government is reviewing the pricing of solar panels, considering possible ways to reduce costs.