The government has imposed an 18% sales tax on imported solar panels. As per the budget document, this measure seeks to create a level playing field for domestic manufacturers and encourage local production of renewable energy equipment.

Officials note that low-cost global imports were putting pressure on the local industry, making it hard for small and medium-sized solar panel manufacturers in Pakistan to compete.

The government hopes this move will support local businesses, generate employment, and reduce reliance on imports.

Critics argue that the move is in the direction of discouraging green energy projects, making less accessible and reliable to people who want to shift to clean energy sources.

Also Read: Govt imposes 18pc tax on e-commerce in budget 2025–26

The budget for FY 26 proposes more tax for online purchases of goods and services as the individuals involved in e-commerce will be brought under taxation.

As per budget document, business activities conducted through e-commerce platforms will now fall under the tax net. The bill imposes 18 per cent tax on all the e-commerce activities.