Renewable sector seeks tax cut

.

---

---

KARACHI:

Renewable energy stakeholders have urged the Engineering Development Board to slash taxes on lithium battery cells to support domestic production and green energy adoption, according to a statement on Friday.

Pakistan Renewable Energy Development Forum Chairman Irfan Allahawala said cells are taxed at 50%, discouraging local battery assembly. High duties keep battery prices elevated, creating a barrier to renewable energy transition.

He called for a level playing field to attract investors for local manufacturing. Pakistan imported 26,000 MW of solar panels during 2022?2024, all requiring batteries. Lithium?ion battery imports reached 1.25 GWh in 2024 and are projected to hit 2.5?3 GWh in 2025. Lower taxes would reduce reliance on imported petroleum products and lower the import bill, Allahawala added.