Islamabad: Pakistan’s government has given the idea to eliminate taxes associated with manufacturing of solar and wind energy devices in the country, in order to raise production and use of renewable power shortages.
A new budget by the government is expected to be approved by the legislation within a month. According to which the manufacturing and assembling of renewable energy sources in the country a five-year exemption from the taxes.
“Pakistan is paying the heavy cost of an ongoing energy crisis prevailing for the last many years,” Finance Minister Asad Umar expressed this during as speech in last week.
“In this difficult time, the promotion of renewable energy resources like wind and solar has become indispensable.”
Only 5 to 6% of the power to Pakistan’s national electrical grid currently comes from he solar power , statistics of Alternate Energy Development Board (AEDB) tell.
The tax reduction was proposed by legislators and local manufactures and they said that equipment needed to generate renewable power expansion is expensive and the cost can only be cut down if the taxes are reduced.