The Pakistan Solar Association, Lahore Tax Bar Association and solar consumers have opposed reports of a proposed 18 percent sales tax on solar energy equipment in the federal budget, urging the government to avoid further taxation and instead support the sector through incentives.
Speaking at a press conference in Lahore, representatives of the organizations said solar energy had helped millions of consumers reduce electricity costs and ease pressure on the national grid. They argued that increasing the sales tax from the existing 10 percent to 18 percent would harm Pakistan’s energy and economic interests.
The speakers said rapid growth in solar adoption had contributed to improved power supply conditions and helped the country avoid around $12 billion in oil and gas import costs over the past four years.
Consumer representatives said many middle-class families had installed solar systems using savings or loans to cope with high electricity bills and load-shedding, making additional taxes unfair.
The groups called on the federal government to reject the proposed tax increase, review its solar taxation policy and adopt measures that promote affordable and clean energy.