The Private Power and Infrastructure Board (PPIB) gave a proposition for 10 percent duty on Solar PV module imports up till the next 10 years. The aim for this proposition is said to be the promotion of domestic manufacturing of PV panels. According to the Managing Director PPIB, the organization reviewed the draft summary for the ECC of the Cabinet on “Solar Panel & Allied Equipment Manufacturing Policy 2024. The summary is to be presented to the ECC in its upcoming meeting.
The comments that were offered in the summary included (i) Duty imposition on Solar PV modules mainly for two reasons including allowance of new manufacturers to get protection until the local market is able to compete with the exports and incentivizing of consumers to buy local products versus imports.
(ii) Localization to be connected to import duties on Solar PV module components for which a plan shall be devised which will encompass several discussed key measures over a time frame.
(iii) Tax free sales into solar PV module manufacturing for 10 years.
(iv) Inclusion of solar cells/wafers into the list of raw materials and
(v) Requirement of a bank guarantee equivalent to the value of tariff and tax exemptions. PPIB has recommended that the requirements regarding the submission and enforcement of bank guarantees be eliminated. Instead, only registered manufacturers should be eligible for said exemptions.
