Islamabad: Deputy Prime Minister and Federal Finance Minister Senator Ishaq Dar on Wednesday announced that the general sales tax (GST) on imported components of solar panels will be reduced from 18% to 10% in the upcoming financial year.
Addressing the National Assembly during the ongoing budget session, Dar said the decision was made after consultations with allied political parties and relevant stakeholders. He stated that the government reviewed several budget proposals as part of its commitment to consensus-based policymaking.
“After mutual consultation, it has been decided to reduce the proposed sales tax on imported components of solar panels,” Dar told the house.
The measure is expected to lower the cost of solar energy infrastructure in Pakistan and support the government’s broader agenda of promoting renewable energy to counter rising power costs and environmental challenges.
In addition to the tax cut on solar imports, the deputy prime minister also clarified that the sales tax on e-commerce services will remain under the jurisdiction of provincial governments. He said that all stakeholders, including the Federal Board of Revenue (FBR) and the business community, were consulted on the issue. A formal clarification is expected to be included in the final budget speech.
These budget revisions form part of the government’s efforts to address industry concerns and streamline taxation policy for the 2025–26 fiscal year.
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