Govt Approves 18% Sales Tax on Solar Panel Imports

The federal government has approved the new 18 percent sales tax on solar panel imports in the federal budget 2025-26, Finance Minister Muhammad Aurangzeb said while presenting the new budget on Tuesday. This is part of the Revenue Division’s urgent efforts to collect up to Rs. 200 billion in additional tax revenue next fiscal year. Solar electricity production is expected to see some big changes to better manage the grid next fiscal year. The new tax in the federal budget is one of those changes. Most changes are expected through the Power Division in the coming weeks.