Karachi, March 4, 2025 – The Union of Small and Medium Enterprises (UNISAME) has urged the government to resolve the ongoing sales tax disputes related to net metering, which are adversely affecting small and medium enterprises (SMEs) investing in solar energy.
UNISAME has emphasized the need for immediate intervention by the Small and Medium Enterprises Development Authority (SMEDA) to protect entrepreneurs from financial setbacks resulting from the controversial tax ruling. The organization argues that the ruling could significantly hinder SMEs striving to adopt renewable energy solutions for sustainable business operations.
Recently, the Federal Tax Ombudsman (FTO) ruled that power distribution companies must collect an 18% sales tax on electricity supplied to the grid without allowing adjustments for net metering. UNISAME has expressed serious concerns that this decision will lead to major financial losses for entrepreneurs who have invested in solar power systems.
Entrepreneurs who utilize solar energy produce electricity during daylight hours and deposit the surplus into the national grid, reclaiming it later when needed. UNISAME insists that this process does not constitute a commercial sale but rather a strategic energy exchange, ensuring efficient utilization of renewable resources. The organization argues that taxing this exchange as a sale is both unjust and counterproductive to national efforts in promoting renewable energy adoption.
In response to the concerns of its members, UNISAME has formally requested that SMEDA’s CEO, Socrat Aman Rana, take up the matter at the highest levels of government. UNISAME is urging SMEDA to advocate for a fair reassessment of the tax implications and push for policy adjustments that safeguard the interests of small business owners who have invested in solar technology.
Furthermore, UNISAME has called on Prime Minister Shehbaz Sharif to take immediate notice of the issue and review the ruling in light of its impact on SMEs. The organization stresses that supporting SMEs in their transition to renewable energy is crucial for economic growth and sustainability.
UNISAME remains committed to ensuring that the concerns of SMEs are addressed and has vowed to continue its advocacy efforts until a fair resolution is achieved. The organization believes that a rational policy adjustment will encourage further investment in solar energy, ultimately benefiting both entrepreneurs and the nation’s energy sector.