The federal government has introduced an 18 percent sales tax on imported solar panels as part of the Budget 2025-26, presented in the National Assembly today by Federal Minister for Finance Muhammad Aurangzeb.
The move aims to create a level playing field between imported and locally manufactured solar panels and is expected to significantly contribute to the growth of Pakistan’s indigenous solar panel industry, according to the Finance Minister.
In his budget speech, Minister Aurangzeb highlighted the government’s commitment to reforming the sales tax system and addressing its long-standing anomalies. He stated that the imposition of this tax is a key step towards achieving equality in competition within the solar panel market.
The government believes that this measure will encourage local production, foster economic growth, and potentially create new employment opportunities within the country’s renewable energy sector.
