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flag Pakistan orders 18% sales tax on solar electricity, impacting thousands of users.

flag 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. flag 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. flag The order also extends to income tax under the Income Tax Ordinance 2001.

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