Federal Minister Khawaja Muhammad Asif stated on Monday that there is currently no proposal to levy any tax on solar panels. In a post on a platform referred to as “banned X,” the minister clarified that neither the Central Power Purchasing Agency (CPPA-G) nor the Power Division has initiated any summary regarding this matter.
Furthermore, he emphasized that the authority to impose taxes lies with the Federal Board of Revenue (FBR) and not with CPPA-G. Regarding the issue of taxing solar panels, Minister Asif asserted that it is not within the purview of CPPA-G’s mandate.
However, Minister Asif acknowledged that the current net metering regime disproportionately affects households that do not participate in it, particularly those with lower incomes. He highlighted that approximately 175,000 existing net-metered consumers need to be safeguarded while ensuring that the additional burden, which amounts to Rs. 110 billion annually, is not further shifted onto the approximately 25 million consumers who are not part of the net-metering system.
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In light of these considerations, Minister Asif underscored the need to review the net metering regime. The objective of this review is to ensure the following:
- Protection of existing net-metered consumers, numbering roughly 175,000.
- Prevention of any additional burden on the approximately 25 million consumers who are not part of the net-metering system.
- Establishment of a pathway to facilitate a fair transition to renewable energy sources, including solar power.
Minister Asif’s statements reflect a commitment to striking a balance between promoting renewable energy adoption and safeguarding the interests of consumers, particularly those from economically disadvantaged backgrounds. This approach aligns with the broader goal of fostering sustainable energy practices while ensuring equitable access to clean energy resources.
