Solar panels, fertilizers may escape tax hike in upcoming budget

June 01, 2026 (MLN): The federal government is reportedly planning a series of tax relief measures in the upcoming budget for fiscal year 2026-27.

According to media sources, the government is considering not to increase  tax on solar panels and fertilizers, while also mulling a reduction in income tax for the salaried class.

The government is also weighing cuts in transaction taxes on property purchases and sales for tax filers, as part of broader efforts to provide relief to the real estate sector and encourage documented economic activity.

Withholding tax imposed under Section 236K on property purchases could be reduced from 1.5% to 0.25%

Similarly, the withholding tax under Section 236C on property sales may also be reduced.

The current rate of 4.5% is expected to be brought down to 1.5% under the proposed budget measures.

However, no relief is expected for non-filers in the upcoming budget.

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