In a bid to clear the air, the power division dismissed as “baseless” the rumours claiming the government was all set to impose a fixed tax on solar power.
Reports were circulating on social media platforms that a summary had been moved to introduce the fixed tax on solar electricity.
In a statement, the power division stated there was no truth in the reports of solar power fixed tax.
“The Central Power Purchasing Agency or Power Division has not sent any such summary to the government in this regard.”
It said that the Net Metering Policy of 2017 was aimed at promoting alternative energy in the system.
The statement affirmed to protect the investment of one hundred and fifty to two hundred thousand net metering consumers.
Backing the trend of alternative energy in the society, the division said that the government had to bear the burden of Rs1.9 per unit as a subsidy. Around 3 million poor consumers were being affected due to the subsidy as the amount is being spent to facilitate the middle and the rich segments of society, the power division said.
If the subsidy continues, the power tariff for the poor will further increase at least by Rs3.35 per unit, it added.
Amid the bulk import of solar panels from China in recent weeks, reports started circulating on social media that the Central Power Procurement Agency (CPPA) has recommended imposing a fixed tax on individuals and businesses installing residential and commercial solar panels.
The reports further said that the CPPA’s proposal suggests levying a tax of Rs2,000 per kilowatt on those installing solar panels for residential or commercial purposes.
The government would collect a tax amounting to Rs2,000 per kilowatt from solar panel installations with a capacity of 12 kilowatts or higher.
Rs24,000 would be charged from the customers installing 12 kilowatt or higher solar panels.
The power division, however, categorically refuted the rumours.
