No Tax On Solar Panel Import, FBR Announced

The Federal Board of Revenue (FBR) Chairman, Rashid Mahmood Langrial, has stated that there are no plans to impose taxes on solar panels import in Pakistan. He clarified that no decision has been made to impose additional taxes, and there is currently no proposal to increase the existing tax rates on these imports.

In 2021, a General Sales Tax (GST) was levied on the import of solar panels and related products. The standard rate for GST in Pakistan is 17%. Additionally, an extra 3% sales tax could be applied to importers who do not possess a registration number.

However, as of June 13, 2024, Pakistan has introduced tax incentives for solar panels, which include the exemption of duties on the import of key components used in the manufacturing of solar panels, inverters, and batteries. These initiatives indicate that the government aims to make solar technology more affordable and widely available in the country.

While there’s an 18% sales tax imposed on solar net metering consumers, this is distinct from import duties on the panels themselves.