Government to Eliminate Taxes on Solar and Wind Power Equipment
Recently in the Parliament, the Federal government has proposed a new idea of taking the decision about the elimination of taxes on the solar as well as the wind energy manufacturing.
The approval of this idea is expected soon and after its implementation, a five-year tax exemption policy for energy equipment manufacturing will be applied. The sole aim behind this decision is simply to promote the use of renewable and solar energy that caters electricity needs directly to the public.
Pakistan is falling short of proper electricity generation and from many years electricity being generated is way too less than the actual electricity demand, resulting in severe load-shedding all over Pakistan. It is evident that with less electricity manufacturing sources, the needs and demands of electricity can never be met.
Therefore this exclusion of tax from solar and wind power equipment is expected to increase the manufacturing of renewable energy sources catering to the needs of the common man. According to the Alternate Energy Development Board, the current supply of electricity through renewable sources in just 5% to 6%. Therefore through the tax exemption, the renewable power sources are expected to generate nearly 20% to 30% electricity to the national electricity grid.
There are more policies and decisions expected by the government in this scenario like cutting off the duties on imported components being utilized in renewable energy products and making the components available easier.
All of this is surely going to increase the electricity supply if we start utilizing renewable sources and products.