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Monday July 22, 2024

Tax breaks proposed to boost solar panel production

Aurangzeb announced that taxes on import of solar panel-related machinery, plants, and equipment would be relaxed

By Our Correspondent
June 13, 2024
This image shows workers installing a solar panel in Jiuquan, Gansu province in China. — Reuters/File
This image shows workers installing a solar panel in Jiuquan, Gansu province in China. — Reuters/File

ISLAMABAD: The federal government proposed significant concessions in taxes, duties, and tariffs on raw materials for solar panels in the fiscal year 2024-25 budget presented on Wednesday, earmarking Rs 253 billion for the energy sector.

Finance Minister Mohammad Aurangzeb announced that duties and taxes on the import of machinery, plants, and equipment related to solar panel manufacturing, including inverters and batteries, would be relaxed. Aurangzeb explained that this initiative aims to meet local demand for solar panels and boost revenue generation. He emphasized that reducing dependence on imported solar panels is essential for saving valuable foreign exchange.

“The purpose of these concessions is to foster domestic production and reduce our reliance on imports,” Aurangzeb said. “This will not only meet local demand but also support our economy by retaining foreign currency reserves.” The proposed budget highlights the government’s commitment to promoting renewable energy and supporting the energy sector’s growth.