Major relief to consumers as 16% GST on solar consumers put on hold

ISLAMABAD – The federal government has temporarily deferred the General Sales Tax (GST) imposed on consumers generating electricity through solar systems.

President Asif Ali Zardari has accepted the request to review the 16 percent sales tax applied to solar users.

The president has referred the case back to the Federal Tax Ombudsman for another review. All power distribution companies had earlier filed appeals challenging the decision.

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The tax had been implemented on electricity produced through solar systems, resulting in significant financial burdens for consumers.

The Federal Tax Ombudsman had ordered tax collection in February this year, but the directive will now undergo reconsideration following the government’s latest instructions.