The PML-N-led government announced tax relief on solar imports in Pakistan’s Budget 2024-25. This initiative aims to make green energy more affordable for households and businesses by lowering the cost of solar panels, inverters, and related equipment.
The budget documents reveal that these tax incentives will cover not just the import of complete solar panels but also the production of related machinery, raw materials, and components. This broad scope is designed to stimulate the local solar industry, reduce emissions, and help the country save valuable foreign exchange.
Prior to this announcement, inverters were subject to an 18% sales tax, which had been a significant cost burden for consumers. The new tax relief measures are expected to lower these costs, making solar energy a more accessible and attractive option for Pakistanis.
Moreover, Chinese investors have suggested that the government should impose import duties on fully assembled solar panels. This approach could encourage local manufacturing, providing a boost to domestic production and jobs.
Despite concerns raised earlier this year, the government has decided to maintain the current net-metering policy. This policy allows households and businesses that generate their own solar power to sell excess electricity back to the grid. Keeping this policy unchanged ensures continued support for individuals and companies investing in solar energy.
By making solar energy more affordable and supporting local production, the Budget 2024-25 aims to drive Pakistan towards a greener and more sustainable future. As the nation faces challenges of high energy costs and environmental concerns, these measures are a bright step forward in the journey towards clean energy.
