No proposal sent to govt for tax on solar panels: Power Division

ISLAMABAD: Power Division has refuted reports of imposing fixed tax on solar panels and said that there is no truth to such news.

Earlier it was reported that the Central Power Procurement Agency (CPPA) has recommended imposing a tax on individuals and businesses installing residential and commercial solar panels.

The proposal suggests levying a tax of Rs2,000 per kilowatt on those installing solar panels for residential or commercial purposes.

Denying any such proposal the power division on Saturday said that no such proposal has been sent by the CPPA or the power division to the government

Consumers and the government have to bear the burden of one rupee and 90 paisa in the form of subsidy, the statement said.

CPPA proposes tax on residential, commercial solar panels

About 2.5 to 3 crore poor consumers are affected by the subsidy, the statement said

Rs 1.90 are going out of the pockets of the poor and into the pockets of the middle and rich classes, the statement said.

If this trend continues, the bills of consumers may increase by Rs 3.35 per unit, the statement said

The power division said the Net Metering Policy of 2017 was aimed at promoting alternative energy in the system.   There has been a phase where the solarization has increased very rapidly.

The power division said that such proposals and amendments are being considered to save the poor from further burden.

The statement affirmed to protect the investment of one hundred and fifty to two hundred thousand net metering consumers.