Solar industry campaigns against tax on panels and inverters ahead of proposed hike in budget. Calls for abolition of customs duties on batteries and inverters. The PSA has warned more action is needed to support battery energy storage system (BESS) deployment in a market where solar’s share of the energy mix has grown rapidly.
Pakistan’s solar industry association has launched a campaign to protest a potential hike in the general sales tax applied to solar panels in the country, while calling for the abolition of a raft of taxes and duties to support further PV and battery storage deployment.
The Pakistan Solar Association (PSA) has launched its ‘Stop the Sun Tax’ campaign ahead of a 2026/2027 government budget which could see higher tax and duties applied to renewables products.
Solar panels in Pakistan are currently subject to a 10% general sales tax (GST), a rate already opposed by the PSA when it was introduced in 2025, but now the government is considering hiking this to 18% in its next budget.
This in combination with existing import duties on some solar and battery storage equipment is hindering electrification in Pakistan according to the PSA, at a time when the association argues the country should be reducing exposure to fossil fuel imports.
