The Minister Confirms That There Are No Current Proposals To Impose Taxes On Solar Panels

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Federal Minister Khawaja Muhammad Asif stated on Monday that there are no plans to impose taxes on solar panels. In a post on the prohibited platform X, the minister clarified that neither the Central Power Purchasing Agency (CPPA-G) nor the Power Division had initiated any summary regarding this matter. He also emphasized that the authority to levy taxes lies with the Federal Board of Revenue (FBR), not the CPPA-G.

He expressed concerns that the current net metering system unfairly disadvantages poorer households who do not participate. The minister stated that a review of the net metering system aims to achieve several objectives:

  1. Ensuring protection for existing net-metered consumers, totaling approximately 175,000.
  2. Preventing any additional financial strain on the roughly 25 million consumers who are not part of the net metering program, which currently incurs an extra burden of Rs. 110 billion per year.
  3. Preserving a feasible pathway for a fair transition to renewable energy, particularly solar power.
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