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Sindh Energy Minister Nasir Shah has called on the government to reconsider its stance on imposing taxes on solar panels, citing concerns about the financial burden it would impose on the public.
In a statement issued on Saturday, Shah expressed his apprehension regarding the potential impact of such taxes, particularly considering the already high electricity prices prevalent in the country and the limited accessibility to electricity in many regions.
Highlighting the significance of supporting individuals who have adopted solar panels as an alternative energy source, Shah emphasized the need for government assistance rather than imposing additional financial burdens. His remarks were prompted by reports suggesting that the Central Power Purchasing Agency (CPPA) had recommended imposing taxes on both individuals and businesses installing solar panels, with a summary forwarded to the Ministry of Energy for consideration.
However, the Power Division has refuted these reports, clarifying that there are no plans to impose a fixed tax on domestic and commercial solar panel installers. Instead, the government is considering reducing net metering buyback tariffs for consumers who have installed solar systems, both residential and commercial.
Shah underscored the dire need to address the soaring electricity costs in Pakistan, which have become a heavy burden on the general populace. He also pointed out that many regions in the country still lack access to electricity entirely, prompting citizens to turn to solar panels as a viable alternative to illuminate their homes.
In light of these concerns, the Sindh minister urged the government to extend support to those who have embraced solar energy by waiving taxes on the import and purchase of solar panels, thus facilitating the transition towards sustainable energy practices.