Pakistan’s Solar Panel Imports Spark Local Industry Tax Debate
“The country has so far imported 2.25 billion solar panels,” as per the paper came to the knowledge of the media.
Pakistan has connected 6271MW of electricity on net metering, an electricity billing mechanism that allows consumers who generate their electricity through solar panels.
Moreover, 6506 megawatts of electricity have been installed without the net metering mechanism, as per the official paper.
According to the document, the country has 5521MW of off-grid solar, and the solar inventory is expected to generate around 13,000 megawatts of electricity.
Concerned sources said that the local industry is being damaged owing to the absence of a tax on solar imports.
“Tax-free imported solar panels being dumped in the country,” sources added.
“The government intends to promote the local solar industry with an 18 percent sales tax on imports, proposed in the budget to help the local industry,” sources said.
It is to be mentioned here that 18 percent GST has already been imposed on the local manufacturing of solar panels.
The National Assembly’s standing committee for finance on Tuesday rejected the budget proposal regarding the 18% sales tax on imported solar panels.
Chairman FBR informed the NA body’s session, chaired by Naveed Qamar, that the sales tax is not imposed on photovoltaic cells. “There is no sales tax on the import of complete solar panels. Tax being imposed over parts being imported to complete them here,” the FBR chief said.
“Tax should not be slapped over solar panels if you talk about renewable energy,” Mirza Iftikhar said. “Imported solar panels are cheaper than the locally manufactured ones, which are also sub-standard in quality,” he said.
The standing committee’s members rejected the FBR’s proposal with a majority vote.
MQM’s Javed Hanif in his note of dissent said that imported solar panels are being dumped in Pakistan and supported budget proposal of imposing 18% general sales tax on solar panels.
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