FBR Forces Solar Panel Importers To Raise Prices

Web DeskJanuary 8, 2024
FBR Forces Solar Panel Importers To Raise Prices

The Federal Board of Revenue (FBR) is facing criticism for contemplating additional taxes on solar panels despite a global decline in their prices. The Pakistan Alternative Energy Association (PAEA) accused the FBR of pressuring solar panel importers to raise prices. In a letter to the Chairman of FBR, the Executive Director of PAEA, Tariq Khattak, highlighted the decreasing international prices of solar panels, which contradicts the FBR’s standard operating procedures. According to Khattak, importers are struggling with the import and clearance of solar panels due to the illogical increase in domestic rates. The FBR’s prescribed unit prices of $0.14/W and $0.16/W are significantly higher than current international export prices, causing difficulties for importers.

The State Bank of Pakistan (SBP) has raised concerns about the notable differences in pricing declared on invoices compared to the FBR circular. The SBP is treating transactions with significant variances as red flags, leading to non-entertainment of such transactions. The FBR’s insistence on unreasonably high taxes during a time of declining global demand for solar panels is hindering their import and contributing to the current energy crisis in Pakistan.

Read more : Finance Ministry Clarifies FBR Restructuring Situation

The PAEA emphasized the need for an immediate withdrawal of the SRO (Statutory Regulatory Order) on solar panels, urging the government to allow large-scale imports at reduced rates. This, according to the association, would promote the widespread use of solar panels in various applications, addressing the energy crisis and aligning with the government’s advocacy for alternative energy solutions. The letter underscores the importance of adopting policies that facilitate the transition to renewable energy sources and promote sustainability in the energy sector.

Share This Post

News Guru

WEb logo-04 (1)

We strive to bring you the most comprehensive and up-to-date news from reliable sources. Our team of experienced journalists and writers are committed to delivering unbiased and factual news, with the highest levels of professionalism and integrity.

News Guru, 2024 © All Rights Reserved