Govt Announced New Tax on Solar Panels in 2025-26 Budget?

Pakistan’s government might add an 18% sales tax on solar panels and equipment in the 2025-26 budget, set to be revealed today, June 10, 2025. This plan aims to boost government funds and meet IMF (International Monetary Fund) guidelines.

The IMF wants Pakistan to cut tax exemptions, including those for solar products, to help fix the economy. Removing these benefits could help the government collect more money and close its budget gap.

What Could This Tax Change?

• Higher Solar Costs
  Solar panels could cost 18-20% more, making it tougher for people and businesses to switch to solar power.
• Less Solar Adoption
  With pricier panels, fewer people might choose solar energy, slowing Pakistan’s move toward clean energy.
• Solar Industry Concerns
  Solar businesses worry this tax could harm sales, reduce investments, and stall growth in renewable energy.

The Federal Board of Revenue (FBR) hasn’t confirmed anything yet. Discussions are ongoing, and a final call is still pending.