Karachi: June 9, 2023 – In a bid to promote the manufacturing and production of solar photovoltaic (PV) modules in the country, the federal government has put forth a proposal to exempt certain machinery and equipment used in the industry from taxation. The details of the proposal were disclosed in the Finance Bill 2023-24.
According to the document, the government has recommended a 0% tax rate on various key components and machines utilized in the manufacturing process of solar PV modules. These include the sun simulator, glass lifter, tabber stringer, hi-speed layup station with ROBOT, motorized visual inspection, buffer before bussing, multi-station for bussing, centering conveyor with visual inspection, fully automatic or semi-automatic laminator with centering, loading, and unloading.
Additionally, the proposal suggests a 0% tax rate on several other machinery and equipment essential to the solar PV modules manufacturing industry. These include the automatic inline framing machine, automatic silicon dispenser, direction changer with a 90-degree rotator, centering conveyor for sun simulator, hi-pot test equipment, electroluminescence (EL) tester, motorized conveyor, EVA/black sheet cutting machine, ribbon cutting and bending machine, lab test equipment, conveyor belt, laser cutting machine for cell, and cell sorting machine and tester.
By exempting these items from taxation, the government aims to incentivize investment in solar PV modules manufacturing and support the growth of the renewable energy sector in the country. This move aligns with the government’s broader goals of promoting clean energy solutions and reducing reliance on fossil fuels.
The proposal, if approved, will provide relief to manufacturers by reducing the financial burden associated with importing or procuring these specialized machines and equipment. It is expected to stimulate local production, create job opportunities, and contribute to the development of a sustainable and environmentally friendly energy infrastructure.
The Finance Bill 2023-24 is currently under review, and its provisions, including the proposed 0% tax on solar PV modules manufacturing equipment, will be further deliberated upon by relevant authorities and stakeholders.