In a major relief for Pakistan’s renewable energy sector, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has officially confirmed that there are no new or additional taxes being imposed on the import of solar panels.
Speaking on recent concerns, Langrial stated that no proposal or decision exists to increase current tax rates on solar imports.
⚡ Current Tax Landscape on Solar Energy Products
Here’s a breakdown of the current taxation environment:
🛃 Solar Panel Imports
- ✅ No new import taxes as of 2025.
- GST Status: A 17% General Sales Tax (GST) has been in place since 2021.
- 3% Additional GST may apply to importers without a registered sales tax number.
⚙️ Tax Incentives (as of June 13, 2024)
To boost local production and clean energy adoption, Pakistan has introduced tax exemptions on components used in the manufacturing of:
- ✅ Solar Panels
- ✅ Inverters
- ✅ Solar Batteries
This initiative aligns with national goals to increase accessibility and reduce the cost of solar technology.
⚠️ What About Net Metering Consumers?
It’s important to note that while imports remain untaxed:
- An 18% GST is currently imposed on solar net metering users, which refers to consumers who sell excess electricity back to the grid.
- This is separate from taxes on imported panels and applies to electricity billing, not hardware.
🌍 Supporting Renewable Energy in Pakistan
Pakistan’s stance on solar imports reflects a strong policy shift toward clean energy. These measures aim to:
- 🔋 Lower installation costs
- ☀️ Encourage solar adoption across households and businesses
- 🏭 Boost domestic manufacturing of solar equipment
By keeping solar imports tax-free and incentivizing production, the government is pushing for a greener, more self-reliant energy future.
📣 Final Word
If you’re planning to invest in solar energy, now is the right time. With no import taxes, tax-free components, and increased solar adoption nationwide, Pakistan is making renewable energy more affordable and accessible than ever.
💡 Going solar just got easier — and cheaper.
