ISLAMABAD (Kashmir English): Solar panels have become more affordable in Pakistan after a reduction of 18 percent in sales tax to 10 percent to incentivize renewable energy use in Pakistan.
Deputy Prime Minister and Foreign Minister Senator Ishaq Dar announced the dramatic policy change. Addressing the Senate, Dar announced that 46% of solar power system materials are imported, thus making affordability a key challenge for the consumer and clean energy investors.
The solar tax cut is part of the government‘s grand economic plan to ensure the adoption of solar energy and lower the reliance on fossil fuels, he stated.
The relief on solar products in Pakistan is in line with the increasing demand for clean and accessible electricity solutions.
Experts believe the step will reduce installation costs and speed up Pakistan‘s shift towards green energy. Dar highlighted that Pakistan‘s economy is stabilizing, and after public and stakeholder comments, the government has made changes in several budget proposals.
The cut in solar panel taxes is an indication of the government‘s dedication to sustainable development goals (SDGs) and relaxing the financial load on families and businesses going solar.
Clarifying the fears regarding taxation on digital services, the deputy prime minister explained that sales tax on digital services would continue to be a provincial matter, and there was no proposal to centralize this revenue source in the hands of the federal government.
The budget highlights presented that the government made the decision to finance universities in Sindh by advancing money with the emphasis on developing the higher education infrastructure.
It also incorporated major energy development schemes through provinces that would be realized under PIDCL to substitute the role hitherto being played by PWD.
The discussions with the International Monetary Fund (IMF) are on cards to deal with revenue losses without compromising on development objectives.
