Pakistan Solar Association Wants Govt to Withdraw 18% GST on Solar Panels

The Pakistan Solar Association (PSA) has called on the government to withdraw the proposed 18% general sales tax (GST) on imported solar panels in the 2025–26 budget, warning it could derail years of progress in the solar energy sector.

The association said the solar industry has helped provide affordable, sustainable power to households while reducing reliance on fossil fuels and limiting environmental harm. It cautioned that the tax would hurt adoption, raise costs, and damage investor confidence.

A PSA official said the government’s reasoning—to protect local manufacturers—is flawed. According to the official, Pakistan currently has no large-scale or high-efficiency solar panel manufacturing plants.

The few that do exist produce low-wattage panels that don’t directly compete with imported products. As a result, the official argued that the tax does little to protect local industry and instead puts the country’s clean energy goals at risk.

PSA Chairperson Waqas Moosa said the GST would make solar energy more expensive for consumers at a time when global momentum is shifting toward renewables.

The association urged the government to remove the proposed tax in the final budget and instead promote policies that support clean energy, encourage investment, and ensure solar remains a viable alternative for Pakistan’s growing energy needs.