LAHORE: The Pakistan Solar Association, Lahore Tax Bar Association and solar consumer representatives have expressed concerns at reports of proposed 18 per cent sales tax on solar energy equipment in the federal budget and have demanded that the government refrain from imposing any more taxes on the solar energy sector but provide incentives and facilities for promotion of clean, affordable and environment-friendly energy, says a press release.

In a joint press conference held at the Lahore Press Club, Pakistan Solar Association Chairman Waqas Moosa, President Nasir Mahmood, Vice Chairman Shahab Ghauri, General Secretary Muhammad Farooq Gujjar, former federal budget secretary of Lahore Tax Bar Association Saeed Ayub said solar energy was successful and lasting solution to Pakistan’s energy crisis, which had partially relieved millions of consumers from the burden of expensive electricity and benefitted the national economy.

The speakers said a 10pc sales tax was already imposed on solar equipment, the proposal to increase it to 18pc was against the country’s energy and economic interests. They added that the loadshedding situation in the country had been better this year compared to the past and solar energy had played a big role in this.

Millions of consumers reduced the pressure on the national grid with their personal investments, which had benefited not only electricity consumers but also the national economy. They said that during the last four years, Pakistan managed to avoid about $12 billion worth of imported oil and gas costs, in which the rapid growth of solar energy played a major role.

Consumer representatives Shahid Usman, Aamir Butt and Omar Khokhar said that citizens who were adopting solar energy were not installing solar for any luxury or investment, but they had taken this step to save their families from expensive electricity and load shedding. Millions of middle-class families have installed solar systems in their homes by spending their savings or taking loans and it’s unfair to impose more taxes on such people, they added.

The speakers urged the government to consider solar energy as a pillar of the national energy policy instead of making it a revenue-generating tool.

The Pakistan Solar Association, Lahore Tax Bar Association and consumer representatives demanded that the federal government reject the proposed 18pc sales tax on solar equipment, review the current tax policy and adopt policies that would lead Pakistan towards affordable and clean energy.

Published in Dawn, June 8th, 2026