Perturbed by reports of tax on solar panels, PPP Senator Palwasha Khan has urged the prime minister to form a committee to find out who was spreading such news.

“I will describe it as a conspiracy against the prime minister,” she said in her Senate speech on Monday while raising the issue related to solar energy “levies”.

Solar panel installers in Pakistan were worried on Saturday when reports said that the Central Power Procurement Agency had recommended imposing a tax on individuals and businesses installing residential and commercial solar panels.

The proposal suggested levying a tax of Rs2,000 per kilowatt on those installing solar panels for residential or commercial purposes.

But the next day the Power Division refuted such reports. But its statement confirmed that the government was planning to cut net metering buyback tariffs for commercial and residential consumers who have installed solar systems.

According to Senator Palwasha, such developments have led to serious concerns among the people. “This is the first country in the world where such types of news are released and problems are created for the government. I demand that from where such news is released.”

She said that people switched to renewable energy by selling their assets and making investments from their pockets, highlighting that the country added 7,000MW of energy to the system in just seven months.

At a time when clean energy was being promoted in the world such news was released, she said and added that the power regulators were already Rs70/unit after buying it for Rs21/unit.

The PPP senator described such a decision as “humiliating” for the government. “The PM should take action on it and see who is doing this. [Is this] ad-hocism and some Babu is trying to favour their favourites.”

She demanded the premier and Senate Chairman Yousuf Raza Gillani to form a committee and ascertain the reason behind such stories. Palwasha added that how people would be able to bear such a burden when they decided to switch to alternative energy.

“This is stupidity and nonpolitical. Whoever is doing this is against the government. I request the PM and you to form a committee and ask the Federal Investigation Agency to see from where this news is spreading. Arrest those who spread it and make them an example of,” she said.

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PPP Senator Sherry Rehman seconded her colleague and described it as a “very important issue”. She added that it was against the prime minister’s commitment.

Sherry added that the news was not just related to taxation, but also cut net metering buyback tariff for commercial and residential consumers who have installed solar systems.

“This is a concern why trial balloon and the Power Division said it. Many people and diplomats phoned [us]. This should not happen.”