ISLAMABAD: The National Assembly’s Standing Committee on Finance and Revenue on Tuesday decisively rejected a proposal to impose an 18 percent General Sales Tax (GST) on imported solar panels and photovoltaic cells.
The proposal, presented by the Federal Board of Revenue (FBR), was met with unanimous opposition from committee members, who argued that such a tax would hinder public access to affordable renewable energy. Despite the FBR’s reservations, the committee stood firm on supporting the continued tax-free import of solar equipment.
FBR officials maintained that the move was necessary to curb money laundering reportedly linked to solar panel imports. They also highlighted the disparity between imported and locally assembled panels, noting that domestic manufacturers are already subjected to the standard 18% GST, placing them at a competitive disadvantage.
However, committee members countered that the broader public interest in promoting renewable energy and making solar technology more accessible outweighed these concerns. They emphasized that encouraging solar adoption was critical in addressing the country’s energy challenges and reducing reliance on traditional energy sources.
A few days earlier, FBR Chairman Malik Amjad Zubair Tiwana had briefed another parliamentary panel, reiterating that the proposed tax was aimed at providing a level playing field for the local industry while generating additional revenue.
Despite the FBR’s stance, the committee opted to protect consumer interests by maintaining the current tax exemption on imported solar panels.
