Hailing the government's decision of allowing duty-free import of solar panels, the business community of South Punjab said that the move would not only help promote solar energy system in the country, but would also lower the prices of solar panels. Multan Chamber of Commerce & Industry's (MCCI) President Khawaja Muhammad Usman said that Customs duty and sales tax should not be charged at statutory rate on the import of some specific parts of solar panel.
However, government should protect the interest of the local manufacturers of indigenous engineering industry, he added.
The MCCI chief said that the FBR took timely action and directed the concerned Model Customs Collectorates that all the impugned consignments would be released against the written undertaking by the importers that they would also bring necessary clarification from the Engineering Development Board that the instant imported solar panels are not manufactured locally. Under the previous SRO.575(I)/2006, the condition of locally manufactured goods was not applicable on import of solar panels and allied equipment.
However, this condition is now applicable in terms of Fifth Schedule of Customs Act, 1969 and Sixth Schedule of Sales Tax Act, 1990.The details are that machinery and equipment, for power generation through renewable sources of energy, have been imported and cleared duty and sales tax free.
Consequently, no change of duty and tax structure was made on renewable energy equipment in the recently announced Finance Act, 2014.
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