ISLAMABAD – Federal Board of Revenue (FBR) firmly denied reports that new 18% sales tax is being imposed on solar power users, clearing air that no new tax has been implemented under recent policy changes.
FBR officials clarified that 18% sales tax already applied to electricity bills affects all domestic consumers, including those using solar systems. “This is not a new or special tax,” officials made it clear, “but the standard sales tax long embedded in electricity bills.”
The clarification comes after former Finance Minister Miftah Ismail sparked confusion on social media, hinting that new gross metering tax laws could raise bills for solar users. The revenue authority warned that such statements created the false impression of an additional tax, whereas in reality, no new levies have been imposed.
On the other hand, Prime Minister Shehbaz Sharif has taken immediate notice of NEPRA’s new solar regulations in wake of strong government oversight. The premier directed Power Division to approach NEPRA to protect the contracts of solar users and to file a review petition without delay.
He stressed that the financial burden on solar users should not be passed on to over 37.6 million general electricity consumers. He further instructed the Power Division to formulate a comprehensive action plan to address the matter.
This latest development underscores the government’s commitment to protecting renewable energy users while maintaining transparency in taxation policies.
Protected Consumers could pay Rs200–300 Monthly under New Tariff Plan
