The federal government has temporarily deferred the implementation of a 16% General Sales Tax (GST) on electricity generated through solar systems. This decision was made following the approval of a revision petition filed by solar consumers.
The President of Pakistan, upon accepting an appeal regarding the solar GST, referred the case back to the Federal Tax Ombudsman for re-hearing. The President directed the Federal Tax Ombudsman to conduct a thorough examination of the matter to ensure that a fair decision is made regarding the imposition of the tax.
It is important to note that all electricity distribution companies had filed an appeal against the Federal Tax Ombudsman’s initial decision, which led to the imposition of the GST on solar users. The implementation of this tax had caused significant financial strain on solar consumers, leading to widespread concerns.
