Is There a New 18% Tax on Solar Power Users?

The Federal Board of Revenue has clarified that there is no new 18 percent sales tax being imposed specifically on solar consumers under recent policy changes, dismissing claims that such a levy has been introduced.

FBR officials said the existing 18 percent sales tax that already applies to electricity bills for all domestic consumers also applies to those with solar systems.

They stressed that this is not a new tax targeted at solar users, but simply the standard sales tax that has long been part of electricity billing.

The clarification came after a tweet by former finance minister Miftah Ismail suggested that new tax rules related to gross metering could lead to higher bills for solar consumers.

Officials said this created a misunderstanding because it did not reflect any additional sales tax being imposed on solar customers beyond what already exists.