Senate panel wants duty on solar charger abolished

Seeks concessionary tax on machinery for Fata and Pata

Irshad Ansari June 15, 2023



The Senate Standing Committee on Finance and Revenue has recommended the implementation of a nationwide uniform policy to abolish taxes and duties on various items, including solar chargers, and to provide concessional tax rates on machinery for the former Federally and Provincially Administered Tribal Areas (Fata and Pata) in the federal budget for the year 2023-24.

The panel met under the chairmanship of Saleem Mandviwalla in the Parliament House.

The meeting was attended by committee members including minister of state for finance, FBR member and other relevant officials.

A detailed discussion was held on the tax concession extended by the finance ministry.

The chairman addressed the issue of duty-free vehicle imports and tax concessions granted to prominent individuals from Arab countries. He expressed concern over the misuse of these vehicles in Pakistan, as they were being driven within the country instead of being sent abroad.

In response, officials from the finance ministry provided information regarding the individuals who were granted the privilege of duty-free vehicles and other tax concessions. The list included 17 individuals from the UAE, 12 from Qatar, two from Saudi Arabia, and two from Bahrain.

The committee directed that further consultation be held on the matter.

During the meeting, the officials of the energy ministry said that the government wanted to keep zero duty on some machinery for the solar policy.

The finance ministry officials noted that the Tariff Policy Board had recommended zero duty on components used in the solar energy.

They said customs duty had been reduced to zero on solar panel while sales tax would also be abolished, whereas earlier, duties of three to 16 per cent were imposed on them.

The committee chairman observed that the prices of solar panels will not reduce unless sales tax and income tax were removed.

He suggested that concessions should also be given at local level for the production of solar panels.

Committee member Senator Sadia Abbasi insisted on providing timeframe for concessionary policies to protect the investors. The committee also recommended abolishing taxes and duties on related items including solar charger.

It proposed adopting the same policy as in the whole country by abolishing concessional tax on machinery for Fata and Pata.

The committee chairman sought complete details of the taxes and duties which were either reduced or increased to clarify the overall difference.

The committee said that duties were being reduced to zero to encourage the production of diapers in the country.


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