The National Assembly’s Standing Committee on Finance and Revenue on Tuesday unanimously rejected the Federal Board of Revenue’s (FBR) proposal to impose a standard 18 percent General Sales Tax (GST) on imported solar panels and photovoltaic cells.
Despite the FBR’s argument that money laundering was involved in solar panel imports and that these panels are seldom used in the domestic market, committee members maintained that the public should continue to benefit from tax-free solar panel imports.
The FBR had previously highlighted that locally assembled solar panels are already subject to the 18 percent GST, while imported panels remain exempt, putting local manufacturers at a disadvantage. The tax authority argued that applying GST on imports would create a level playing field for the domestic industry.
However, the committee prioritized public access to affordable solar technology and rejected the tax proposal, signaling support for the growth of renewable energy adoption in Pakistan.
