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Pakistan orders 18% sales tax on solar electricity, impacting thousands of users.
Pakistan's Federal Tax Ombudsman has ordered power distribution companies to impose an 18% sales tax on electricity for consumers using solar net metering, affecting thousands of users.
This decision, based on the Sales Tax Act 1990, means the tax will be applied to the total electricity supplied, not just the net consumption, and follows the discovery of a Rs9.8 billion revenue loss.
The order also extends to income tax under the Income Tax Ordinance 2001.
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Pakistán ordena un impuesto del 18% sobre las ventas de electricidad solar, afectando a miles de usuarios.