On Tuesday, the National Assembly’s Standing Committee on Finance and Revenue rejected a proposal by the Federal Board of Revenue (FBR) to impose an 18% General Sales Tax (GST) on imported solar panels and photovoltaic cells.
The committee’s decision came despite strong opposition from FBR, which argued that the imported panels were being used for money laundering and were rarely utilized in the domestic market. FBR suggested that imposing GST would help curb these activities and level the playing field for local manufacturers, who already face the tax on locally assembled panels.
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However, committee members unanimously disagreed with the FBR’s stance, emphasizing that solar energy is vital for Pakistan’s energy future. They argued that imposing such a tax would only raise costs for consumers and reduce access to affordable solar technology, especially for rural areas.
The rejection of the proposal is seen as a win for the renewable energy sector, as it ensures continued tax-free imports of solar panels, promoting greater adoption of solar energy. The decision also highlights ongoing debates around balancing support for domestic industries with the broader public interest in sustainable energy solutions.
The move is expected to have positive implications for Pakistan’s energy strategy as the country seeks to expand its reliance on renewable energy sources.
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