Solar Energy
ISLAMABAD: The Central Power Purchasing Agency (CPPA) has recommended to the federal government a new tax imposition on individuals and businesses utilizing solar panels.
According to sources familiar with the matter, the CPPA has suggested a tax rate of Rs 2,000 per kilowatt for those who install solar panel systems of 12 kilowatts or larger, targeting both residential and commercial entities.
This proposal was initially directed to the Ministry of Energy (Power Division) and has subsequently been advanced to Prime Minister Shehbaz Sharif for final authorization.
Should the prime minister endorse this measure, it would mandate a tax payment of Rs 24,000 for users installing 12 kilowatt solar systems.
In parallel to this development, the federal government is also deliberating on the pricing of solar panels. There is a consideration underway to possibly lower the prices of these panels, which could counterbalance the financial impact of the proposed tax on future consumers.
Amid these considerations at the federal level, regional initiatives to adopt solar energy are gaining momentum.
Sindh Minister for Jails, Ali Hasan Zardari, recently announced a significant shift towards solar energy in the province’s prison system. He detailed that solar kits ranging from 200 to 600KV will be installed to power the fans in prisoner barracks.
The implementation of this green initiative has already started in several key jails including the Karachi Central Jail, Women’s Jail, and Landhi Jail.
The plan encompasses a broader rollout where, in the subsequent phase, facilities in Hyderabad, Mirpurkhas, Badin, Sanghar, Khairpur, Ghotki, Jacobabad, and Sukkur will transition to solar power.
This move aligns with broader environmental goals and aims to reduce operational costs and the carbon footprint of these institutions.
This juxtaposition of enhancing solar infrastructure in public institutions while proposing taxes on private solar usage underscores the complex balancing act between promoting renewable energy adoption and managing economic policies.
The outcome of these proposals and initiatives will significantly influence the energy landscape and environmental strategies of Pakistan.
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