Discounts on Solar Panels and Infrastructure Investments
Introduction
The federal government has introduced significant measures in the Budget 2024 aimed at boosting local solar panel production and reducing reliance on imports. This move is designed to save valuable foreign exchange and support the energy sector’s growth.
Solar Panel Discounts
To meet the growing demand for solar energy solutions in the local market, the government has announced discounts on various components used in the manufacturing of solar panels. This includes solar plants, machinery, batteries, raw materials, and other related components. The aim is to promote local manufacturing and reduce dependency on imported solar panels.
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Tax Reforms
The budgetary document released on Wednesday outlines several key changes in tax policies for the fiscal year 2024-25. The government has decided to abolish sales tax, concessional rates, and exemptions on solar panel-related items. This move is expected to make locally manufactured solar panels more competitive and affordable.
Sales Tax on Mobile Phones
In contrast, different categories of mobile phones will now be subject to an 18% sales tax. This policy aims to balance the government’s revenue generation while encouraging local production and consumption of solar energy solutions.
Standard Rate of Sales Tax on Goods
The budget also introduces a standard rate of sales tax on various goods. This includes the imposition of withholding tax on scrap materials such as copper, coal, paper, and plastic. These measures are part of the broader strategy to streamline tax collection and enhance fiscal stability.
New Energy Projects
The budget allocates substantial funds for new energy projects to bolster the country’s power infrastructure.
Land Acquisition for Solar Power Plant
An amount of Rs 6,250 million has been earmarked for acquiring land for the installation of a 1200 MW solar power plant in Layyah. This project is a significant step towards increasing the country’s solar power capacity and ensuring sustainable energy supply.
Discounts on Solar Panels and Infrastructure Investments
Electricity Distribution Improvement
A budget of Rs 4,500 million has been set aside for improving electricity distribution systems. This investment aims to enhance the efficiency and reliability of the power distribution network.
Asset Performance Management System
To modernize the power infrastructure, Rs 6,000 million has been allocated for the installation of an asset performance management system on 100 kV and 200 kV distribution transformers. This system is expected to optimize the performance and lifespan of critical power assets.
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Power Evacuation Projects
The budget includes significant allocations for evacuating power from various hydroelectric and renewable energy projects.
Key Allocations
- Dasu HPP Stage-1: Rs 34,148.335 million
- Suki Kinari and Kohala Projects: Rs 16,801 million
- Tarbela 5th Extension: Rs 2,200 million
