Solar Sector Opposes Proposed 18% Tax on Equipment in Pakistan
Lahore – June 8, 2026
The Pakistan Solar Association, along with the Lahore Tax Bar Association and representatives of solar consumers, has expressed concern over reports of a proposed increase in sales tax on solar energy equipment in the upcoming federal budget.
The groups urged the government to avoid raising taxes on the solar industry and instead continue supporting renewable energy through incentives and favorable policies.
Concerns Over Rising Costs
At a press conference in Lahore, representatives stated that solar energy has helped millions of households reduce electricity costs and lessen pressure on the national power grid.
They warned that increasing the sales tax from 10 percent to a proposed 18 percent could negatively impact both consumers and the broader energy sector.
Impact on Energy Savings and Imports
Speakers highlighted that the rapid adoption of solar systems in Pakistan has contributed to improved electricity supply conditions and reduced reliance on imported fuels. According to their estimates, the shift toward solar energy has helped save billions of dollars in oil and gas import costs over recent years.
Public Concerns Over Affordability
Consumer representatives said many families, especially from the middle class, invested in solar systems through savings or loans to manage rising electricity bills and frequent load-shedding. They argued that additional taxation could make clean energy less accessible.
Call for Policy Review
The groups have called on the federal government to reconsider the proposed tax increase and review its solar energy taxation policy. They emphasized the need for measures that encourage affordable and sustainable energy solutions in the country.
