India considers slashing import taxes on solar panels
POWER & RENEWABLE ENERGY

India considers slashing import taxes on solar panels

India is considering reducing import taxes on solar panels and seeking a rollback in goods and services taxes (GST) on these devices to address a shortage in local production and meet the increasing demand for renewable energy.

The renewable energy ministry in India has engaged in discussions with the finance ministry to gain approval for the proposed reduction of the import tax on solar panels from 40% to 20%, the sources revealed. They emphasised that the decision is not yet finalised and hence requested anonymity.

Furthermore, the two ministries are contemplating recommending a reduction in the goods and services tax (GST) on solar panels from 12% (imposed in 2021) to 5% to the Goods and Services Tax Council, the sources added.

The 40% import tax on solar panels was implemented by India in April 2022, along with a 25% tax on solar cells, with the intention of discouraging imports from China. This move was aligned with Prime Minister Narendra Modi's ambitious plan to foster self-reliance and reduce emissions by expanding renewable energy generation.

However, one of the sources acknowledged that domestic production capacity falls short of meeting the demand, necessitating the need for imports to bridge the gap.

The proposal emerges as Prime Minister Modi aims to achieve a target of 365 gigawatts (GW) of installed solar capacity by 2031-32. This target is part of a broader push towards green energy, encompassing initiatives such as promoting electric vehicles and sustainable aviation fuel.

As of now, the finance ministry of India has not responded to email inquiries seeking comments. A spokesperson for the renewable energy ministry has assured that a comment will be provided at the earliest opportunity.

India is considering reducing import taxes on solar panels and seeking a rollback in goods and services taxes (GST) on these devices to address a shortage in local production and meet the increasing demand for renewable energy. The renewable energy ministry in India has engaged in discussions with the finance ministry to gain approval for the proposed reduction of the import tax on solar panels from 40% to 20%, the sources revealed. They emphasised that the decision is not yet finalised and hence requested anonymity. Furthermore, the two ministries are contemplating recommending a reduction in the goods and services tax (GST) on solar panels from 12% (imposed in 2021) to 5% to the Goods and Services Tax Council, the sources added. The 40% import tax on solar panels was implemented by India in April 2022, along with a 25% tax on solar cells, with the intention of discouraging imports from China. This move was aligned with Prime Minister Narendra Modi's ambitious plan to foster self-reliance and reduce emissions by expanding renewable energy generation. However, one of the sources acknowledged that domestic production capacity falls short of meeting the demand, necessitating the need for imports to bridge the gap. The proposal emerges as Prime Minister Modi aims to achieve a target of 365 gigawatts (GW) of installed solar capacity by 2031-32. This target is part of a broader push towards green energy, encompassing initiatives such as promoting electric vehicles and sustainable aviation fuel. As of now, the finance ministry of India has not responded to email inquiries seeking comments. A spokesperson for the renewable energy ministry has assured that a comment will be provided at the earliest opportunity.

Next Story
Real Estate

Transforming Real Estate with Sustainable Choices

The times are changing for the construction industry. Once associated with high carbon emissions, energy consumption, and waste, they are now waking up to the environmental cost of traditional practices. Companies are now looking to be a part of the solution instead of the problem. Using recycled materials in building projects is one of the most accessible yet significant changes. This one change has the potential to lower project costs, energy consumption, and landfill usage. Giving Old Materials a New PurposeRecycled building materials aren’t just scraps from old sites. These material..

Next Story
Real Estate

UP Housing Board Finalises 40-Acre Development Plan in Vasundhara

The Uttar Pradesh Housing and Development Board (UPHDB) has finalised a 40-acre development plan in sectors seven and eight of Vasundhara, Ghaziabad, under a mixed land use model. The layout includes a 10-acre satellite centre for the All India Institute of Medical Sciences (AIIMS) and two major plots of 20 and 10 acres for group housing and commercial use. According to officials, the project falls under the Transit-Oriented Development (TOD) zone of the Regional Rapid Transit System (RRTS) corridor, with the Sahibabad Namo Bharat station located nearby. The auction process for the plots is e..

Next Story
Infrastructure Urban

Marubeni To Invest Rs 10 Billion in Telangana’s Future City Industrial Park

Japanese conglomerate Marubeni Corporation has signed a Letter of Intent with the Telangana government to develop a next-generation industrial park in the state’s upcoming Future City. The announcement was made during the official visit of the Telangana Rising delegation, led by Chief Minister A Revanth Reddy, to Japan. Marubeni has proposed an initial investment of Rs 10 billion to develop the industrial park in phases over 600 acres. The park will cater to Japanese and other multinational firms seeking to establish manufacturing operations in Hyderabad. The proposed development is expect..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?