India to impose 20-25% import tax on solar modules

R.K. Singh, India’s Power Minister has announced in a virtual news conference, that India is considering imposing an import tax of 20-25% on solar modules and 15% on solar cells for a year beginning in August.

 

India does not currently levy a customs duty on imports of solar cells and modules, but has a safeguard duty to protect its local industry which expires in July.

 

“In the second year, we are looking to impose a 40% tax on solar modules,” R.K. Singh said adding that cells will be taxed at 25% in the second year.

 

The energy hungry nation imports most of its solar cells and modules from China, in a bid to meet Prime Minister Narendra Modi’s target of installing 100 gigawatts of solar energy by 2022.

 

Electricity generation from non-fossil fuel sources has been steadily rising and is expected to reach 40% by 2022, and over half of total output by 2030.

 

Singh also said that there was a “good case” to extend a deadline for emissions standards, which involve installing Flue Gas Desulphurization (FGD) units that cut emissions of sulphur dioxide - known to cause lung diseases.