Tax on Solar Panels: The Pakistani authorities are considering implementing a tax on solar panel installations for both residential and commercial users.
The proposal for a solar panel tax has sparked controversy in Pakistan, especially since the government previously encouraged the adoption of solar energy to reduce reliance on fossil fuels. This encouragement led to a significant number of individuals and businesses installing solar panels independently. However, the proposed tax may deter further adoption of solar energy solutions.
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Recently, it was reported that the Central Power Purchasing Agency (CPPA) recommended taxing solar panel installations at residential and commercial properties. The decision from the federal government on this matter is still pending.
Who Will Be Affected by the New Solar Panel Tax?
Under the proposed plan, the tax would apply to systems with a capacity of 12 kilowatts or more.
Proposed Tax Rate per Kilowatt for Solar Panel Systems
The CPPA has suggested that the government impose a tax of Rs2,000 per kilowatt on installations that have a capacity of 12 kilowatts or more.
Total Proposed Tax for a 12 Kilowatt Solar Panel System
If the government approves the proposal, owners of 12-kilowatt solar panel systems could be taxed Rs.24,000.
