In a significant policy adjustment following strong coalition feedback, Deputy Prime Minister and Foreign Minister Ishaq Dar announced in the National Assembly that the proposed 18% Sales Tax on imported components of solar panels has been reduced to 10%. The move, described as a pro-public revision, follows extensive consultations with allied parties and the Federal Board of Revenue (FBR).
Dar, speaking during the ongoing budget debate for fiscal year 2025–26, emphasized the importance of making clean energy solutions more affordable. “The decision to revise the proposed tax down to 10% was reached after detailed deliberations with coalition stakeholders,” he told lawmakers, adding that a formal clarification will be made during the concluding speech on the Finance Bill later this week.
Also Read: No higher tax for hybrid cars as govt changes course
The tax reduction has been welcomed as a step towards promoting renewable energy and easing the financial burden on consumers. Prominent political figures, including PPP Senator Sherry Rehman, voiced their approval. In a post on X (formerly Twitter), Rehman said, “On solar panels, which power a rooftop revolution in Pakistan the tax is now being reduced from 18% to 10%. It is something the party has pushed back on at all forums.”
Appreciate the federal government for accepting the @PPP_Org proposals thru both the House Finance Committees and interventions for finally reviewing the cut in the universities grant, which is being restored to 4.6 billion now.
— SenatorSherryRehman (@sherryrehman) June 18, 2025
On solar panels, which power a rooftop revolution…
The decision has been framed as part of a broader, inclusive approach to economic policy-making. PPP MNA Syed Naveed Qamar also praised the move, calling it a “win for cooperation and balanced governance.” He noted that such reforms are crucial to promoting sustainable development and aligning fiscal priorities with environmental goals.
The solar panel tax revision comes amid a wider budget debate marked by mixed reactions. While some treasury MNAs lauded the government’s economic stewardship, others emphasized the need for equitable development and relief for small-scale farmers. However, the solar tax rollback appears to have emerged as a rare point of consensus, reflecting the growing political and public momentum behind clean energy initiatives in Pakistan.
