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Pakistan Government Rejects Reports of Fixed Tax on Solar Power Consumers
(CTN News) – The Power Division has stated that there is currently no fixed tax on solar Power in the country. According to sources, neither the Central Power Purchasing Agency (CPPA) nor the Power Division have provided the government with a summary of solar Power taxes.
According to a notification, the Net Metering Policy, implemented in 2017, is intended to encourage investment in alternative energy sources such as solar power. This strategy has resulted in a large rise in solar panel installations, particularly among the affluent class, showing an increasing trend toward solar energy adoption.
According to the division, the government must also provide subsidies to household and industrial users, resulting in a Rs1.90 subsidy burden on the national treasury. According to the Power Division, this hurts 25 to 30 million impoverished consumers.
The Power Division has also seen an increase in solarization, prompting worries about balancing this development. It stressed the significance of regularly monitoring the entire solarization process to ensure its long-term viability and effectiveness.
Furthermore, it was noted that the present solarization tariff may need to be adjusted, including rate and regulatory changes, to accommodate the rapid development in solar energy adoption.
Proposed Tax on Solar Power Installers
In light of these changes, the Power Division stressed the need to reevaluate existing policies and regulations to support and sustain solar energy growth. It emphasized that the entire solar system is being continuously monitored.
The Power Division’s statement follows media allegations that the Central Power Purchasing Agency recommended that the Ministry of Power impose a levy on residential or commercial solar panel installers. It purportedly suggested levies of Rs2,000 per kilowatt on solar panel installers.
According to the research, a 12-kilowatt solar Power grid will most likely generate Rs2,000 per kilowatt. According to Energy Ministry sources, this one-time fee would be paid to anyone who installs solar panels for residential or commercial use.