The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to slash import duties on renewable energy equipment to 5 per cent and grant a full Value Added Tax (VAT) waiver as one of the ways to solve the country’s perennial power challenges.
This was part of the recommendations in a policy brief reviewing the 2026 Fiscal Policy Measures and Tariff Amendments, which called attention to concerns over the high cost of solar batteries and inverters.
The CPPE said the current pricing of these products remains prohibitive for most households and small businesses, limiting access to reliable and clean energy alternatives.
The centre noted that lowering tariffs on renewable energy components would significantly improve access to alternative power solutions and enhance productivity, emphasising that high costs of solar batteries and inverters continue to restrict adoption among households and small enterprises.
The CPPE also recommended reducing import duties on mass transit buses to 5 per cent with a full VAT waiver to encourage private sector investment in public transportation, and also proposed capping tariffs on used passenger vehicles (2000cc and below) at 25 per cent, arguing that current rates exceeding 50 per cent place a heavy burden on the middle class and hinder growth in e-hailing and logistics sectors.
According to the organisation, these measures would ease cost pressures, improve mobility, and support broader economic activity.
