Tax on solar panel: The Pakistani government is mulling over imposition of tax on residential and commercial solar panel users.

The tax on solar panel has become a hot issue in Pakistan as the government in the past has been promoting the solar energy to cut dependency on oil-based energy. It is the reason people independently started installing solar panel setup for their residential and commercial purposes but the imposition of tax would discourage them.

A day earlier, reports surfaced that Central Power Purchasing Agency (CPPA) had proposed the imposition of a tax on residential and commercial users. The federal government is yet to take a decision in this regard.

Which Solar Panel users will face new tax?

As per the proposal, the tax will be imposed on users, who have installed solar panel system with 12 kilowatt and above capacity.

Proposed Per Kilowatt Tax on Solar Panel System

The agency has asked the government to receive Rs2,000 per kilowatt tax from those who have installed solar setup with 12kw or above capacity.

Proposed Total Tax on 12 Kilowatt Solar Panel Setup

The 12-kilowatt panels would pay Rs.24,000 in tax if the proposal is accepted by the federal government.