Last Updated on: 27th April 2024, 10:39 pm
The Central Power Purchasing Agency (CPPA-G) has recommended to the Pakistani government that individuals and businesses utilizing solar power systems should be subjected to a tax. According to their suggestion, users with solar panels installed would face a tax of Rs. 2,000 per kilowatt.
Overview of the Proposal (CPPA-G)
If you have integrated solar power setups, both residential and commercial, you may soon be subjected to a tax of Rs. 2,000 per kilowatt. The CPPA-G has forwarded this proposition to the Ministry of Energy (Power Division) for further consideration.
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Tax Calculation Method
Should this recommendation be accepted, you, as someone with a 12-kilowatt solar panel configuration, would need to pay a tax totaling Rs. 24,000.
Progression of the Proposal
The Ministry of Energy (Power Division) has elevated this proposal to the Prime Minister for approval. Upon endorsement, an application will be submitted to the National Electric Power Regulatory Authority (NEPRA) to revise the buyback rates of net metering electricity.
Reason behind the Proposal
The government’s aim in proposing this tax is to generate revenue from solar panel users. This revenue would contribute to strengthening the national grid and supporting infrastructure development efforts.
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Impact of the Solar Tax
This tax would affect both residential and commercial users who have chosen solar power systems.
Final Thoughts
The government is currently deliberating on the proposal to impose a tax of Rs. 2,000 per kilowatt on solar panel users. If approved, this tax would impact both residential and commercial users. The revenue generated would be directed towards enhancing the national grid and supporting infrastructure development initiatives.