The Federal Board of Revenue (FBR) is shocked over the declining prices of solar panels and is exploring the possibility of imposing additional taxes.
The Pakistan Alternative Energy Association (PAEA) has accused the FBR of exerting pressure on solar panel importers to charge higher prices.
In a letter addressed to Chairman FBR, the Executive Director of PAEA Tariq Khattak pointed out the decline in solar panel prices worldwide, which contradicts the regulator’s standard operating procedures to illogically increase domestic rates. Importers are encountering difficulties in managing the import and clearance of solar panels due to this, he said.
Khattak pointed out that the prescribed unit prices of $0.14/W and $0.16/W significantly exceed the current international export prices for these modules on a CFR (Cost and Freight) basis.
This discrepancy between the designated prices in the FBR circular and the actual prices declared on invoices has caught the attention of the State Bank of Pakistan (SBP). The minimum threshold of $0.14 to $0.16/Watt, as outlined in the FBR circular, is now under scrutiny due to the notable differences in pricing declared on invoices.
As a result, transactions exhibiting a substantial variance between the declared unit prices and the FBR circular’s guidelines are now being treated by the SBP as a prime red flag indication. Consequently, such transactions are not being entertained.
The invoice price of solar panels, as stipulated in the relevant FBR circular, supersedes international end-consumer retailer rates. The FBR guidelines do not align with the reality on the ground, especially in the case of Chinese solar panels, which are priced considerably lower, he added.
Due to the unprecedented decline in demand for solar panels worldwide, prices are falling further, however, FBR is charging unreasonably high taxes from solar panel importers, the letter added.
It said the incorrect valuation by FBR is a significant impediment to the import of solar panels and fueling the current energy crisis in the country. The letter remarked that this comes at a time when the government is advocating for alternative energy solutions.
PAEA has urged the immediate withdrawal of the SRO on solar panels, urging the government to permit large-scale imports of solar panels at reduced rates. The letter opined this would facilitate the widespread use of solar panels in domestic, industrial, and commercial applications, subsequently boosting consumption and addressing the energy crisis.
There must be a monitoring body for the check and balance against FBR. FBR also should be accountable and they have to keep an eye on the economic development all over the world and keep the taxing system of Pakistan according to the world economic and business norms.
FBR is one of the biggest Mafias in Pakistan
it is against mafias
The Govt n oil IPPs are hell bent to discourage and end solar. They’ve halved the buy back solar net metering credits (in rupees not units). Jan 2023 NEPRA chairman wanted to quarter the amount. BTPL rawalpindi issued notified to reduce 30‰ of the already halved credits.
Essentially they buy solar energy at peanuts price and sell triple the rate! Haram khor unlimited.
The government has already deducting 30%, I live in Bahria Town and as per them NEPRA is deducting 30% now and the consumer is getting 70% buy back advantage
This is an anti people’s government and would certainly want to increase price of everything let alone the solar panels, they don’t want to give any sort of advantage to the people of Pakistan
fbr has to collect tax too higher the price higher the tax lowering price can reduce tax amount.support govt and fbr
All are thieves.
I sure their are anti Pakistan people in the FBR. Increasing huge unit price and taxes of electricity. Increasing gas prices beyond thinking. And the Solar panels for which the people have alternate option to reduce their utility expenditures. But surely there are anti Pakistan people in government, in government departments, in different fields. These people (only for their own interests) harming Pakistan, people of Pakistan suffering much due to inflation. These negative acts by FBR and by other departments harming exports of Pakistani products which cost high and cannot compete the international market. ALLAH ki lanat ho aisay khabeeson per.
Govt. and IPPs are MAFIAS under IMF