Renewable energy FBR exempts equipment from tax

Move aimed at tackling energy crisis.


Irshad Ansari May 07, 2011

ISLAMABAD:


The Federal Board of Revenue (FBR) has announced a conditional exemption from sales tax and federal excise duty on the import and local supply of renewable energy equipment such as solar PV panels and other instruments.


According to a notification issued on Saturday, FBR has amended a 2008 order to help the country deal with the energy crisis and promote alternative energy.

A senior FBR official told The Express Tribune that importers and suppliers of solar and wind energy equipment and alternative energy devices would require a certificate from the Alternative Energy Development Board (AEDB), in order to be exempted from sales tax and federal excise duty.

He said that under the notification, import and local supply of solar PV panels, LVD induction lamps, light emitting diodes (LEDs), wind turbines, solar torches and photo voltaic (PV) modules were exempted from sales tax and federal excise duty.

According to the official, the Economic Coordination Committee (ECC) of the cabinet had earlier approved exemption from all taxes, including five per cent customs duty, for renewable energy technologies and devices. These products included solar photo voltaic (PV) panels and their accessories, batteries, charged converters, inventors, induction lamps, wind turbines and solar torches.

According to officials, the country is in an energy crisis that is increasing the pressure on more traditional sources of energy. Promotion of renewable energy, which is an environmentally-friendly source, will help overcome the energy shortfall, they added.





Published in The Express Tribune, May 8th, 2011.

COMMENTS (1)

naeem khan | 10 years ago | Reply Positive initiatiative by the government..
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