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NA, Senate panels reject 18% tax on solar panels
- On Tuesday, the National Assembly and Senate finance committees rejected the government's proposed 18% sales tax on imported solar panels in Islamabad.
- The tax proposal emerged from the Finance Bill 2025-26 amid efforts to broaden the tax base and comply with a $7 billion IMF fiscal consolidation program.
- Committees opposed the tax due to concerns it would burden consumers, discourage renewable energy adoption, and harm the solar sector viewed as essential, not a luxury.
- FBR Chairman Rashid Mahmood Langrial said the 18% GST targets imported parts for assembly, not fully imported panels, and that the tax could raise Rs20 billion.
- The rejection indicates rising political resistance to taxing solar energy despite fiscal pressures, prompting the government to seek alternative revenue sources and continue subsidy reductions.
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Pakistan Lowers GST on Solar Panels to 10%
Islamabad June 18 2025: Deputy Prime Minister and Foreign Minister, Senator Muhammad Ishaq Dar on Wednesday said that the digital sales tax on services would remain within the jurisdiction of provinces, while the proposed 18% GST tax on solar panels had been reviewed and revised down to 10% following consultations. Speaking in the National Assembly, Senator Dar stated that after detailed discussions with coalition partners and relevant stakehold…
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Total News Sources13
Leaning Left1Leaning Right3Center1Last UpdatedBias Distribution60% Right
Bias Distribution
- 60% of the sources lean Right
60% Right
L 20%
C 20%
R 60%
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