Government denies imposing fixed tax on Solar power

Government denies imposing fixed tax

Government denies imposing fixed tax on Solar power

The Pakistani government denies fake reports of imposing a fixed tax on residential and commercial solar panel installers. It came after reports started circulating in the media that the Central Power Purchasing Agency (CCPA) proposed the Ministry of Power to charge people and businesses who install solar panels.

According to those fake reports, the Ministry of Power received a summary of the CCPA to charge people and firms for solar power installations. They cited ministry sources claiming homeowners or businesses that install solar panels may be charged PKR 2000 per kilowatt (kWh).

However, those who have a 12-kilowatt system may be charged PKR 24,000. Many people install 12kWh solar panels to save zero electricity expenses in Pakistan. Hence, after getting fake reports of tax imposition, several Pakistanis started expressing concern and strongly criticizing the government.

Following the hype, the Ministry of Power Division (Federal Government) categorically denies reports of imposing a fixed tax on solar panels. The Power Division released a statement disputing the rumors of tax imposition.

According to the Power Division, the government had not received any such summary. The rumors of fixed tax imposition are untrue. Moreover, the ministry referred to the 2017 Net Metering policy which aims to promote investment in renewable energy sources including solar power.

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The installation of solar panels has significantly increased because of this policy, particularly among wealthy communities. It shows an increasing trend towards the adoption of solar energy since 2017.

However, the Ministry also stated that solar panel installation by wealthy people has greatly impacted poor customers. It ultimately increases the financial burden on poor electricity consumers, in the form of high-taxed electricity bills.

Hence, the Power Ministry stated that low-income consumers’ electricity bills will increase by PKR 3.35 per unit if this trend continues.

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