The Federal Board of Revenue (FBR) has rejected reports claiming that a new 18% sales tax has been imposed on solar system users in Pakistan. Officials clarified that no new tax has been introduced under recent policy changes.
What the 18% Tax Actually Is
According to FBR officials, the 18% sales tax already applies to electricity bills for all domestic consumers, and the same standard tax is charged to households using solar systems. Authorities stressed that this is not a new or special tax but a long-standing component of electricity billing.
Why the Confusion Arose
The clarification came after remarks made by former finance minister Miftah Ismail on social media, where he suggested that new tax rules linked to gross metering could increase bills for solar users.
FBR said the statement created the impression that an additional tax was being imposed, which is incorrect.
Impact on Solar Consumers
Officials emphasized that solar users will continue to pay the same sales tax structure as before. No extra burden specific to solar installations has been introduced.
