Bad News for Solar Panel Importers: Government increase 18% Tax on to Curb Imports

The Pakistan government has proposed an 18% general sales tax (GST) on imported solar panels. This is part of the 2025-26 budget plan. The move comes as solar panel imports surge in the country. The Pakistan Solar Association (PSA) has raised concerns. They say the new tax could slow solar adoption. Higher costs may discourage businesses and homeowners from switching to solar energy.

Government’s Rationale Behind the Tax

Officials argue the tax will help regulate rising imports. Pakistan has seen a sharp increase in foreign solar panels. The tax could boost local manufacturing. It may also generate additional revenue for the government.

Impact on Renewable Energy Goals

Pakistan aims to increase renewable energy use. However, the new tax may create hurdles. Solar energy is key to reducing power shortages. Higher prices could delay progress in clean energy adoption. The PSA urges the government to reconsider. They suggest incentives for local production instead. A balanced approach could support both industry growth and renewable energy targets.

What’s Next for Solar in Pakistan?

The final budget approval will determine the tax’s fate. Stakeholders await further discussions. The decision could shape Pakistan’s solar energy future. Stay updated for more developments on Pakistan’s solar policy changes.