Senate panel seeks tax cuts for local solar panels

ISLAMABAD: The Senate Standing Committee on Industries and Production on Thursday called for the elimination of taxes on locally manufactured solar panels and imposition of duties on imported panels to bolster the domestic industry and production. The parliamentary panel that met here with Senator Aon Abbas in the chair, said the issue of taxes on local solar panel manufacturing would be raised in the Senate, expressing confidence the government would remove taxes on domestic production and impose duties on imported panels to support the local industry.

He emphasized the need to regulate solar panel installation and control prices, raising concerns over disruptions in supply and demand.

While taking briefing from the Engineering Development Board (EDB) on the country’s solar policy, Senator Abbas questioned whether the government or Independent Power Producers (IPPs) were creating obstacles to solar adoption. The Ministry clarified its commitment to promoting solarization across the country.

On the Electric Vehicle (EV) Policy, Senator Abbas proposed mandatory installation of electric chargers at fuel stations nationwide to encourage eco-friendly practices. The EDB assured the committee of accessible charging infrastructure for all.

The senator also highlighted major strides in mobile phone manufacturing, noting that 93 per cent of phones are now produced locally, creating 40,000 jobs. While praising these localization efforts, EDB officials expressed concerns about the competitiveness of local production, which remains 8 per cent costlier than China’s. They cited stalled R&D funding under previous policies as a key impediment to industrial growth.

The Senate committee also formed a subcommittee, chaired by Senator Saifullah Sarwar Khan Nyazee, to review the EDB policies. Members include Senators Saleem Mandviwalla and Danesh Kumar.

The panel also addressed delays in farmer sugarcane payments, with the chairman expressing concern over farmers not receiving dues within the stipulated 7-day period. Payments have been withheld for over a month and a half in some cases. The committee demanded detailed information on sugar mills and their ownership, with a comprehensive review of the sugar policy scheduled for the next meeting.

Attendees included Senators Saifullah Sarwar Khan Nyazee, Mir Dostain Khan Domki, Syed Masroor Ahsan, Saleem Mandviwalla, Danesh Kumar and senior officials from the Ministry of Industries and Production and EDB.