Govt denies reports about plans to impose Rs2,000 fixed tax on solar power

The Power Division on Saturday denied reports that the government was planning to impose a fixed tax on solar power.

In a statement, the power division termed the reports as "false and baseless".

“The Central Power Purchasing Agency or Power Division has not sent any such summary to the government in this regard,” it added in a statement.

Earlier it was reported that Prime Minister Shehbaz Sharif-led government had received the proposal from the power division to impose a fixed tax on individuals and businesses installing residential and commercial solar panels.

The reports further said that the government is mulling to levy a tax of Rs2,000 per kilowatt on those installing solar panels for residential or commercial purposes.

The reports added that the government would collect a tax of Rs24,000 from those installing solar panel with a capacity of 12 kilowatts or higher.

However, the claims were refuted by the power division.