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
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%.
