Renowned economic expert and business leader Dr Shahid Rasheed Butt stated on Friday that the decision to impose a tax on solar panels is not only unwise but also a direct attack on national self-reliance, energy reforms, and public relief. He said this step is equivalent to pushing people further into the abyss of inflation, increasing business costs, and deepening dependency on imported fuel.
Addressing an emergency meeting of traders and industrialists, Dr. Butt stated that electricity prices in Pakistan are already the highest in the region, while traders and manufacturers are struggling under the weight of production costs. Solar panels could have significantly reduced electricity bills and saved valuable foreign exchange. Still, even this path is now being deliberately blocked.
He asserted that there is no moral, economic, or environmental justification for taxing solar technology. Developed countries are offering subsidies for solar power, while a crisis-hit country like Pakistan is imposing taxes on it, which is tantamount to national suicide. He warned that this decision would hinder the promotion of clean energy, undermine the concept of net metering, and severely erode the confidence of both consumers and investors.
Dr Shahid Rasheed Butt stated that this move had been made under the influence of the import lobby, the oil mafia, and the IPPs lobby, all of whom are fearful of the growing popularity of solar energy. Due to these vested interests, Pakistan has never achieved energy self-sufficiency. In a country where circular debt has crossed 3.5 trillion rupees, what logic is there to tax cheap, alternative, and privately invested sources of power, he asked.
The business leader cautioned that this decision must be reversed immediately. Otherwise, investment in the solar sector will dry up, the local market will shrink, and Pakistan will violate its commitments under global environmental accords. He emphasised that the government should make solar technology completely tax-free for the public so that a sustainable solution to the power crisis can be achieved.
He concluded by stating that if the government has no other way to increase revenue, it should reduce unnecessary expenditures but must not target people experiencing poverty who have sold jewellery or borrowed to obtain solar power.
