On May 20, current Pakistani Prime Minister Sheikh Baz Sharif announced during a meeting with Karachi industrialists and businessmen that the country would cancel the previous PTI government's 17% general sales tax on photovoltaic panels, claiming that the move was in The only way out for the country in the face of rapidly rising oil import bills.
The meeting, held at the new Prime Minister's Office, will focus on Pakistan's "key issues in the economy" and "recommended measures to address current challenges". After nearly half an hour of speech, Prime Minister Sharif invited questions and suggestions from the industrialists present.
The Prime Minister's Office issued an official statement after the meeting, saying the Prime Minister announced the immediate removal of the 17% tax on photovoltaic panels and stressed the need for a mandatory solar water heater policy for every household. In addition, the Prime Minister's Office also quoted Prime Minister Sharif as saying: "At present, Pakistan's oil import bill is 20 billion US dollars, and the cost can only be reduced by promoting green energy. It is worth mentioning that the country is in Sindh and Balochistan provinces. And the Bahawalpur region has huge potential for renewable energy.”
Mr. Zubair Motiwala, President of Businessmen Group, said that Prime Minister Sharif agreed to abolish the taxation policy on photovoltaic equipment after listening to the motion put forward by the Karachi Chamber of Commerce and Industry. At the same time, the prime minister also said that he would seriously consider the "calls" of businessmen to properly supply gas to industries in Karachi, and to seek mechanisms to meet both domestic consumer and industrial needs.
“Businessmen and industrialists in Karachi are well aware that while the government provides facilities, we will play our part and contribute,” Mr Motiwala said. GST, and also promises that the recent decision to ban imports of goods will not affect those importers who have already booked and paid their suppliers. Import orders that have already been opened or paid for will be processed, but no new orders will be accepted.”
In addition, according to Mr. Muhammad Faheem Ashraf, Vice Chairman of the Pakistan Photovoltaic Association, the Pakistani Energy Minister said at an internal meeting on June 4 that they are also introducing tax breaks for photovoltaic panels and related equipment in the budget.