Government Pauses GST on Solar-Generated Electricity Across Pakistan

Government pauses GST on solar-generated electricity across Pakistan
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ISLAMABAD (Kashmir English): The federal government of Pakistan has temporarily postponed the collection of GST levied on consumers who generate their electricity by using solar systems.

President Asif Ali Zardari has approved a request for review of the 16 percent GST on solar-generated electricity across Pakistan

In the meantime, the president has referred the case to the Federal Tax Ombudsman for reconsideration.

Earlier, all power distribution companies had filed appeals challenging the decision.

The tax was imposed on the electricity that is generated through solar systems, thus economically burdening the consumers.

The Federal Tax Ombudsman had ordered the collection of the tax in February this year, but after the government’s latest instructions, this instruction will now be reconsidered.

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