34
ISLAMABAD: The government on Saturday settled all necessary matters regarding import of solar power panels and related equipment for promoting alternative and renewable energy.
The Ministry of Finance, in a statement here, said that Finance Minister Ishaq Dar chaired a meeting in this regard which was attended by senior representatives of the Ministry of Industries & Production, Engineering Development Board (EDB), Federal Board of Revenue (FBR) and the Ministry of Finance.
The minister was informed that the EDB, under the aegis of the Ministry of Industries, met local manufacturers and importers ascertaining their views on the issue of import duty and sales tax.
The EDB was of the view that local manufacturing is limited and lacks the required international certification and standards. The use of solar panels has just started picking up and it is in the interest of reducing the extraordinary load on existing supply of power and reduction in the load shedding to promote the use of solar panels as an alternate source of electricity.
Accordingly, it was decided that the duty and sales tax regime applicable to an industry that does not have local production will be applicable to solar panels.
Prime Minister Nawaz Sharif had assigned Dar the special task to look into the matter and settle all issues concerning import of solar panels.
Accordingly, the minister called an urgent meeting of related departments today to settle all issues.
Published in Dawn December 7th , 2014
Read more
On DawnNews
Comments (34) Closed
Dec 07, 2014 08:10am
tricky title for the work
Recommend
0
Dec 07, 2014 08:11am
First sensible move back this government.
Recommend
0
Dec 07, 2014 08:55am
Bravo, that's the way forward into the future!
Recommend
0
Dec 07, 2014 08:57am
Any tax on imported solar panels be immediately stopped; it's the only way locals will maintain standard and compete with imported solar panels. This is not luxury Mercedes car import, these panels will be running electricity in average home in small isolated village . If Local manufacturers cannot come up to imported standards and price, they should close their shop. People should have option to invest in either solar panels. Shame on elected thugs.
Recommend
0
Dec 07, 2014 09:25am
Strange that such an issue even cropped up, which shows system failure unless there is hue and cry regarding a wrong step. Secondly it is still to be seen what action is taken and finally how much duty / sales tax is retained for imported solar panels. Why has it not been decided that duty / sales tax would be eliminated altogether to promote solar energy alternative? Mr. Ishaq Dar happens to be Chairman of dozens of committees, including vitally important Electoral Reforms Committee. What type of governance does it signify.
Recommend
0
Dec 07, 2014 09:38am
Accordingly, the minister called an urgent meeting of related departments today to settle all issues. Is this paragraph in conformity with the heading?
Recommend
0
Dec 07, 2014 09:44am
so whats the final word? are we being taxed more on solar panels or less?
Recommend
0
Dec 07, 2014 09:47am
Our state should be encouraging people to install solar panels on every rooftop. Imposition of duties and taxes on them by this government was a measure showing complete disregard for the well being of this country. These panels should be subsidised along with LED lighting, in order to relieve pressure on the national grid, energy import bill, the people and the environment.
Recommend
0
Dec 07, 2014 10:01am
And what expertise and qualification does Mr Dar have in power sector?
Recommend
0
Dec 07, 2014 10:51am
Good move.
Recommend
0
Dec 07, 2014 10:53am
A timely decision by the government. The high import duties were casting the PML-N government in a very negative light. I hope the decision is implemented very soon and without any changes.
Recommend
0
Dec 07, 2014 10:54am
They should promote local production. Considering the size of the market, had full tariff GST and import dutiy stayed intact, chinese would have started setting up production units in pakistan. The government should exepmt local production of solar pannels from GST for next 10 years.
Recommend
0
Dec 07, 2014 11:04am
It should be tax free, but this govt want people to suffer. No cheap electricty allowed
Recommend
0
Dec 07, 2014 11:31am
What resolution ? It does not clearly state that custom duty and import charges were withdrawn
Recommend
0
Dec 07, 2014 12:26pm
UK and US are offering subsidy on installation of solar panels and Pakistan is taxing it to discourage people from installing this. They are discouraging alternate energy which can reduced our import bills by increasing tax. The numb skulls dont realize that it would be unreadable to manufacture solar cells in Pakistan as China and U.S. installed capacity which is greater than the demand.
Recommend
0
Dec 07, 2014 12:26pm
Solar panels need to be manufactured in Pakistan, otherwise there's no point in buying these unless such industries can be fully independent from foreign manufacturers.
Recommend
0
Dec 07, 2014 12:57pm
All government buildings should compulsorily use solar lights only,
Recommend
0
Dec 07, 2014 12:59pm
Very good initiative by the Government.
Recommend
0
Dec 07, 2014 01:00pm
@Ali It should have been duty Free. Why does government have to earn money on this??
As far as I remember there is no duty / tax on oil & gas imports. Solar panels should be in the same category.
Recommend
0
Dec 07, 2014 01:05pm
@Umar Aftab
It is being done to promote local industry to manufacture solar stuff.
Recommend
0
Dec 07, 2014 01:57pm
Does this mean 0% Custom Duty and 0% GST?
Recommend
0
Dec 07, 2014 02:02pm
In many countries the use of solar and wind power is encouraged in the form of incentives and/or subsidies. In Pakistan the government needs to recognize the positive impact on the economy if a major portion of the domestic and small commercial power load is shifted to Solar, Water, Wind or BIOgas and, in principle, such "green" power projects ought to be completely free of import duty and sales tax.
Recommend
0
Dec 07, 2014 02:03pm
@imtiaz No it is back to the future.
Recommend
0
Dec 07, 2014 04:02pm
It is so disappointing to see the casual approach - with prolonged power crisis, instead of incentivising govt does not seem to take is seriously. My Indian colleagues tell me that in some Indian states, it is pre-requisite to have at least one/two solar panels as part of any new housing project.
Recommend
0
Dec 07, 2014 05:42pm
If Solar Panel are locally manufacture than it can be in reach of every body. Otherwise it will of less use.
Recommend
0
Dec 07, 2014 05:48pm
There should NO import of solar power panels. But only local manufacturing without tax, gst, duty etc. So they are in reach of everyone.
Recommend
0
Dec 07, 2014 06:34pm
So Mr. Dar, who will get the import permits? I mean no local industry, no step to promote one and opening up the import means issuing import permits. So who is the beneficiary? Who gets further rich? Tell us, tell us!
Recommend
0
Dec 07, 2014 07:45pm
Money spent on laptops should have been spent on solar panels !!!
Recommend
0
Dec 07, 2014 07:49pm
I hate the PMLN govt but this is the only intelligent move they've undertaken in all their time. A move that still most undeveloped countries are unwilling to undertake.
Recommend
0
Dec 07, 2014 10:34pm
Provide tax holiday to local manufacturers.
Recommend
0
Dec 08, 2014 01:00am
Like Benazir's 1993 energy policy that failed to work, there is need for developing a sensible energy policy without any greedy middleman exploits. There must be some places where corruption should be made impossible to exist right in the beginning, like the nuclear energy.
Recommend
0
Dec 08, 2014 02:37am
the tax and duty should only be removed from high performance panels to discourage dumping of low efficiency panels in the country. should set at least 20%-25% efficiency requirement.
Recommend
0
Dec 08, 2014 03:17am
@H L no qualification but tasked to find a way to milk people. Their every act starts with thuggary and ends with it
Recommend
0
Dec 08, 2014 01:03pm
If Government is serious, it should give incentives on your energy bill so more householders may be tempted into installing solar panels. After all solar energy is all about green environment and with abundance of sunshine through the year, Pakistan is well suited of its use. In the West where you do not hear of power failure yet traffic lights are manned using solar energy. Go for a greener Pakistan pollution free.
Recommend
0
