The Power Division has issued a statement to clear up confusion regarding taxation on solar panels for residential or commercial purposes. Contrary to earlier reports, there is no fixed tax on solar power, and no official proposal has been submitted to the federal government for its imposition.
Current Subsidy and Its Impact
Currently, a subsidy of Rs 1.90 per unit is in place, which benefits around 30 million underprivileged consumers. However, if this subsidy continues, these consumers may face an additional burden of at least Rs 3.35 per unit.
Promoting Alternative Energy Sources
The growing trend in solar panels is aimed at promoting alternative energy sources. The government is evaluating the system and considering amendments to protect the poor from further financial strain.
Earlier Reports
Earlier, there were reports that the power agency had asked the government to impose a tax of Rs 2,000 per kilowatt on those who have installed solar setups with a capacity of 12kw or above. This would have resulted in a tax of Rs 24,000 for 12-kilowatt panels, had the proposal been accepted by the federal government.
Government’s Position
The Power Division has clarified that the government is committed to promoting alternative energy sources and protecting the interests of the poor. No fixed tax on solar power has been proposed or imposed.