The federal government of Pakistan has officially announced major relief for the renewable energy sector by reducing the sales tax on solar panels in Pakistan. During his address in the National Assembly, Deputy Prime Minister Ishaq Dar revealed that the previously proposed 18% sales tax on solar panels has now been reduced to 10% under the revised Budget 2024-25.
Dar highlighted that the government is reconsidering several budget proposals, especially after discussions with coalition allies. He also noted that sales tax on digital services remains a provincial matter.
Moreover, the Deputy PM announced an increase in funding for universities in Sindh, from Rs 2.6 billion to Rs 4.6 billion, as part of wider budget revisions.
It’s worth noting that the original plan to impose an 18% tax on solar panels was met with opposition from stakeholders and was subsequently rejected by the Standing Committee on Finance. The government’s updated stance reflects its willingness to support clean energy initiatives and acknowledges the growing importance of solar energy adoption in Pakistan.
This development marks a significant shift in solar panel tax policy, reaffirming the administration’s commitment to easing the financial burden on consumers and promoting renewable energy solutions.
