Govt proposes 18% tax on imported solar panels

June 11, 2025 (MLN): In a move to promote local industry, the federal government has proposed an 18% sales tax on imported solar panels in the Budget 2025–26.

The measure, unveiled by Finance Minister Muhammad Aurangzeb during the budget presentation in the National Assembly on Tuesday, aims to support domestically manufactured solar panels by creating a level playing field between local and imported products.

The minister stated that this step is designed to boost Pakistan’s domestic solar industry, which has struggled to compete with low-cost foreign alternatives.

The initiative also forms part of a broader effort to resolve long-standing distortions in the sales tax system and ensure greater fairness across all sectors.

The imposition of the tax is also expected to increase the price of imported panels, encouraging a shift toward locally made alternatives.

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