Pakistan Imposes 18% Tax on Solar System Users: 250,000 Consumers Affected

The Federal Tax Ombudsman of Pakistan has announced that solar panel users will now be required to pay an 18% tax. This decision is expected to impact approximately 250,000 net metering consumers across the country.

According to the Federal Tax Ombudsman, electricity supply companies failed to collect this tax, leading to a financial loss of PKR 9.8 billion to the national treasury. Authorities argue that implementing this tax is essential to recover lost revenue.

A report by the World Economic Forum states that Pakistan is the sixth most suitable country in the world for solar energy. The country enjoys an average of nine hours of sunlight per day, making it an ideal location for solar power generation.

Pakistan has around 37 million electricity consumers, but only 250,000 of them use net metering through solar energy. With the introduction of this tax, many experts fear a decline in the adoption of solar energy, as higher costs may discourage individuals and businesses from investing in renewable energy solutions.

Industry experts and environmentalists have strongly opposed the decision, stating that it could negatively impact the growth of solar energy in Pakistan. They argue that instead of taxing solar panel users, the government should provide incentives to promote clean energy and reduce dependence on fossil fuels.

Read also : Solar Net Metering Rates in Pakistan

The 18% tax on solar energy users has sparked controversy, with concerns that it may hinder the progress of renewable energy in Pakistan. As the country faces an ongoing energy crisis, policymakers will need to carefully consider the long-term impact of such taxation on sustainable energy development.

Read also : Possible Decline in Solar Panel Prices in Pakistan During Ramadan 2025

Read also : Pakistan wants clarifications from U.S. State Department on possible travel restrictions