Budget 2024-25: Reduction in taxes, duties on raw materials for solar panels announced

Total amount allocated for energy sector Rs253 billion

The federal government proposed concessions in taxes, duties, and tariffs on raw materials for solar panels in the budget for the fiscal year 2024-25 that was presented on Wednesday, allocating a total of Rs253 billion for the energy sector.

Finance Minister Mohammad Aurangzeb stated that duties and taxes are being relaxed on the import of machinery, plants, and equipment related to the manufacturing of solar panels, including inverters and batteries.

He mentioned that the move aims to fulfill the local demand for solar panels and also facilitate revenue generation. He emphasised that the purpose of this initiative is to reduce dependence on imported solar panels and save valuable foreign exchange.