Islamabad: The federal government plans to eliminate taxes on the manufacturing of solar and wind energy equipment, a news source reported. This step will encourage production and use of renewable energy to overcome the country’s power shortages.
The government has proposed a bill concerning this issue. It includes a five-year tax exemption for energy equipment manufacturers and assemblers in the country. As per sources, it is expected that the parliament will approve the bill within a month’s timeframe.
The Alternate Energy Development Board (AEDB) has informed that only 5% to 6% of power supply to the national electricity grid comes from renewable sources.
The waived-off tax arrangement will boost the local manufacturing of equipment needed to expand the usage of renewable energy sources. This, in turn, will increase the volume of renewable power provided to the grid. Renewable energy is expected to contribute up to 28% to 30% of total electricity supply to the national grid by 2030.
An official of the energy ministry believes that government should also cut duties on imported components required for manufacturing renewable energy products. Additionally, he directed local manufacturers to cooperate with the government to identify components that need to be imported, as well as those that can be produced locally.
