PPIB Proposes 10% Duty on Solar PV Module Imports for a Decade


The Private Power and Infrastructure Board (PPIB) has recommended imposing a 10 percent duty on the import of solar PV modules for the next 10 years and beyond. This proposal aims to boost domestic manufacturing of PV panels, as per sources familiar with the matter.

The proposal, part of the “Solar Panel & Allied Equipment Manufacturing Policy 2024” draft, suggests a constant 10% duty over the specified period. PPIB argues that this strategy will support new manufacturers and incentivize consumers to opt for local products, gradually reducing dependence on imports.

To ensure effective localization, PPIB suggests a phased approach with import duties on specific components over time. This includes introducing a 10% duty on aluminum frames, PV back sheets, tempered glass, connectors, junction boxes, cells, and wafers in subsequent years.

Additionally, PPIB recommends tax-free sales into solar PV module manufacturers for at least a decade to support industry growth. The board also emphasizes the inclusion of solar cells and wafers in the list of raw materials for clarity and consistency in policy implementation.

Furthermore, PPIB advises against the requirement of a bank guarantee for investors, proposing eligibility based on registration for tariff and tax exemptions outlined in the policy.

This comprehensive proposal aims to foster a conducive environment for local solar PV manufacturing and reduce reliance on imported modules in Pakistan’s renewable energy sector.

Story by Mushtaq Ghumman

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