For the fiscal year 2024-2025 budget allocation, the government has abolished import duty on the raw materials for solar energy production – a measure that will likely lead to a decrease in the prices of locally manufactured solar panels, inverters, and batteries.

Meanwhile, the tax exemption on assembled solar panels remains in place. This means solar system costs will further drop.

The rumours about a possible increase in the prices of solar panels died on Wednesday after the Finance Bill for fiscal year 2024-25 was introduced in the National Assembly. There is no mention of imposing tax or duties on solar cells either assembled into panels or not assembled.

Rather, the government announced that it was zero rating the duty on the import of raw materials and equipment used in the production of solar panels, inverters, and batteries.

According to the finance bill, custom duty on the following items has been reduced to zero.

Solar Cell Manufacturing Equipment

• Crystal (Grower) Puller (if machine)
• Diffusion furnace
• Oven
• Wafering machine
• Cutting and shaping machines for silicon ingot
• Solar-grade polysilicon material
• Phosphene Gas
• Aluminum and silver paste

Solar PV Modules Panels manufacturing machinery and equipment

• Sun Simulator
• Glass Lifter
• Tabber Stringer
• Hi-Speed Layup
• Station with ROBOT
• Buffer before Bussing
• Multi-station for Bussing
• Centering Conveyor with Visual Inspection
• Fully Automatic or Semi-automatic Laminator with Centering, Loading & Unloading
• Automatic Inline Framing Mac
• Automatic Silicon Dispenser
• Direction Changer with 90 Degree Rotator
• Centering Conveyor for Sun Simulator
• Hi-Pot Test Equipment
• Electroluminescence (EL) Tester
• Motorized Conveyor
• EVA/Black sheet Cutting Machine
• Ribbon Cutting & Bending Machine
• Lab Test Equipment
• Conveyor Belt
• Laser Cutting Machine for Cell
• Cell Sorting Machine & Testers
• Structures & Parts of Structures
• Vacuum Pumps
• Air or Gas Compressors, Hoods
• Non-Domestic, Non-Electric Dryers
• Threading or Tapping Machines n.e.s. for Removing Metal
• Machines and Mechanical Appliances n.e.s. Having Individual Functions
• Electric Brazing or Soldering Machines and Apparatus n.e.s.
• Electric Heating Resistors
• Electric Apparatus for Switching/Protecting Electric Circuits, Not Exceeding 1,000 Volts

Solar Inverters manufacturing machinery and equipment

• Solder Paste Screen Machine
• SMT Pick and Place Machine
• Wave-Soldering Machine
• PCB Conveyor Belt
• SMT Workstation
• Solder Pot
• Solder Cleaning Equipment
• Wire Cutting & Stripping Machine
• Crimping Machine

Also, read this

IMF hasn’t set any condition to convert net metering to gross metering: minister

CCPA ‘proposes’ tax on residential or commercial solar panel installations

PPP Senator Palwasha demands inquiry into solar panel tax news

Lithium-ion batteries manufacturing machinery and equipment

• Weighting Kettles
• Weighting and Conveying Systems
• Storage Tanks
• Glue Port
• Transfer Tanks
• Feeder
• High Speed Spiral Mixer
• Booster Pumps
• Magnetic Filters
• High Speed Homogenizer
• Auxiliary Equipment and DCS Central Control System Components
• Pole Piece Cathode Machine
• Pole Piece Rolling Machine
• CNC Nibbling Machine
• CNC Bending Machine
• Spot Welding Plant
• Auxiliary Equipment
• High Temperature Circulation Thermal Tester
• UL 2054 Fire Testing Equipment
• Pack Rotation Simulation
• Free Fall Tester
• Battery Impact Tester IEC 62133
• UL 1642 Flame Tester
• Electromagnetic Vibration Tester UN 38.3
• Single Wing Electromagnetic Power Drop Testing Equipment
• Hydraulic Crush Testing Equipment

According to the finance bill, the government has eliminated all taxes on machinery and equipment used in the manufacturing of lithium-ion batteries, most of these were subjected to taxes ranging from 5% to 20%.