The Federal Board of Revenue (FBR) has clarified that no new taxes have been imposed on solar panels in Budget 2026-27, while proposing a 5 percent tax on income earned through social media platforms and digital content creation.

Speaking during a technical briefing on the federal budget, FBR Chairman and senior officials rejected reports suggesting fresh taxation on the solar energy sector. They said the growing adoption of solar power had helped reduce pressure on electricity consumers and prevented even higher power costs.

FBR Member Inland Revenue Hamid Atiq Sarwar said solar energy had become an important alternative for households and businesses facing high electricity tariffs and recurring power shortages. He stressed that the budget contained no additional tax measures targeting solar panels.

However, the government has proposed a new tax on income generated through social media platforms. Under the plan, influencers, content creators, vloggers and TikTok users earning income online would be subject to a 5pc tax as part of efforts to broaden the tax base and bring emerging sectors of the digital economy into the formal tax system.

Officials said relief measures had also been introduced for freelancers and the information technology sector to encourage exports and support Pakistan’s expanding digital industry.

The FBR further announced reductions in taxes on airline tickets and online purchases made through credit cards, describing the move as part of efforts to facilitate consumers and businesses.

In the automobile sector, new taxation measures have been proposed for vehicles with engine capacities above 2,000cc, while rates for smaller vehicles will remain unchanged.

The tax authority has set an ambitious revenue collection target of Rs15.264 trillion for the next fiscal year. According to officials, the government is relying more on enforcement and compliance measures rather than imposing large-scale new taxes.

Sarwar said measures worth nearly Rs600 billion in additional revenue are expected through improved enforcement. He noted that only about 600,000 of Pakistan’s estimated four million shopkeepers are currently registered with tax authorities.

The budget also proposes higher duties on e-cigarette liquids, while existing tax rates for professionals such as doctors and engineers will remain unchanged at 15pc.