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The solar panel prices in Pakistan have witnessed a significant decrease over the last six months, and the tax relief given to the sector in the budget for 2024-25 is expected to further reduce prices.
In the new financial bill, passed by Parliament on Friday, the government announced tax relief on the import of solar panels and related equipment. The tax incentives introduced in the budget cover not only the import of complete solar panels but also the production of machinery, raw materials, and components related to solar energy. This comprehensive approach is designed to stimulate the local solar industry.
Previously, inverters were subject to an 18% sales tax, which posed a significant financial burden for consumers. The new tax relief measures are expected to alleviate these costs, making solar energy a more accessible and appealing option for Pakistanis.
Chinese investors have also recommended imposing import duties on fully assembled solar panels to promote local manufacturing. This strategy could bolster domestic production, create employment opportunities, and strengthen the solar industry in Pakistan.
According to experts, tax relief on solar panels and related equipment will decrease prices, while local production of solar panels has the potential to bring a revolution in green energy solutions. However, it will take some time and further efforts to attract foreign investment for solar panel production industries.