TRADE & ECONOMY

Senate Finance Committee Rejects 18% Tax on Solar Plates Amid Public Backlash

Senate’s Finance Committee rejects 18% tax on solar plates after public uproar. Lawmakers say tax hurts poor households trying to escape costly electricity.
2025-06-17
Senate Finance Committee Rejects 18% Tax on Solar Plates Amid Public Backlash

The Senate Standing Committee on Finance has decided to reject the proposed 18% sales tax on solar panels, terming it unjustified and harmful to the public, especially amid the country’s energy crisis and rising inflation.

The move comes as part of the ongoing review of the Budget 2025-26, which had proposed taxation on various renewable energy items, including solar plates, sparking strong criticism from civil society and lawmakers alike.

⚠️ “Tax Will Burden the Poor” – Lawmakers Say

Members of the committee voiced serious concerns during the session.

“Solar plates are now being installed by poor people to escape expensive electricity. Instead of giving relief, we’re making energy access even more expensive,” remarked one committee member.

Senator Ahmed Khan pointed out that the announcement of the tax had already created a black market, where wealthy traders hoarded solar panels and made illegal profits worth billions.

🛑 Tax Proposal to Be Withdrawn

Chairman of the Finance Committee, Senator Saleem Mandviwala, assured that the committee would formally reject the 18% tax proposal and push for its removal from the final finance bill.

“This tax is not acceptable. We will ensure it is withdrawn,” Mandviwala said, affirming the committee’s stance to prioritize affordable energy access over revenue generation.

🌞 Public Pressure and Energy Needs

The proposed tax had triggered a wave of criticism on social media and from environmental groups, who argued that it contradicted Pakistan’s commitments to clean energy and placed an unjust burden on lower-income households seeking relief from skyrocketing power bills.