Solar Panels PV modules will remain Sales Tax (GST) free in the upcoming financial year 2024-2025 as per the proposed finance bill presented in the Budget session held in the national assembly of Pakistan by the finance minister Muhammad Aurangzeb on the 12th of June 2024. Although the market was expecting imposition of 18% GST on import & sale of Solar Panels as the government struggling with capacity payment looks to restrict the installation of net metered solar systems however as things stand at the moment Solar PV modules wether or not in the shape of cell or panels will remain exempt from the imposition of the GST.
Solar panel prices have dropped considerably in the past few months due to several factors, first and foremost being price drop in the international market, due to sever competition between the major solar panel manufacturer and secondly due to oversupply in the Pakistani Market as several newcomers have jumped in the Solar Import business as other grey business such as real estate remain dull & gloomy and the economy remains cash starved. Whereas extremely high electricity bills make the solar PV installation business look attractive.
Solar Water Heaters / Geysers on the other hand continue to be charged with the 18% GST on import & sales as the demand is expected to surge as Gas bills too have surged to unprecedented levels making Solar Water Heater installation look attractive.
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