The federal government presented the Budget 2025-26 in the National Assembly today. Finance Minister Muhammad Aurangzeb unveiled a key proposal aimed at reforming the country’s sales tax system. One of the major changes includes imposing a new tax on solar panel imports.
The finance minister announced an 18% sales tax on imported solar panels. This step aims to create a level playing field between imported and locally manufactured solar products. He said this measure would ensure fair competition in the energy sector.
According to the minister, the tax is part of broader efforts to remove long-standing imbalances in the tax system. The goal is to promote equality in taxation and support domestic industries. By narrowing the gap, the government hopes to encourage growth in local solar panel production.
He also emphasized that this step will play a vital role in strengthening Pakistan’s solar manufacturing industry. Local producers will now have better chances to compete with foreign products that previously dominated the market due to being tax-free.
Although this move may raise the cost of imported solar systems in the short term, the government believes it will bring long-term benefits. These include job creation, industrial development, and energy sustainability within Pakistan.