The NBR expects the move to cut project costs and speed up new generation
Published : 17 Sep 2026, 12:42 AM
The government has stripped away almost all taxes on solar equipment imports, retaining a minimal 1 percent customs duty to step up renewable power generation amid the ongoing energy crunch.
The National Board of Revenue (NBR) said on Wednesday the facility will remain in effect for six months.
The 2026-27 budget had already exempted key solar power equipment imports from customs duty, regulatory duty and advance tax, prioritising renewable and sustainable energy.
Even after those exemptions, however, a total tax burden of 17 percent remained, comprising 15 percent value-added tax (VAT) and 2 percent advance income tax.
All other levies have now been waived, leaving only the 1 percent import duty. The facility will also apply to commercial importers.
The NBR said the move would cut solar project costs, speed up new generation capacity, reduce fossil fuel dependence, and strengthen energy security and sustainable economic growth.
