Budget 2025-26: The federal government has proposed a significant measure in the 2025-26 budget to support local solar panel manufacturing by imposing an 18% sales tax on imported panels.
The budget paper states that this action is being made to level the playing field between imported and domestic solar panels in order to strengthen Pakistan’s solar panel manufacturing sector and encourage local manufacture of renewable energy equipment.
Officials claim that low-cost imports from the international market put pressure on the local sector, which led to problems for Pakistan’s small and medium-sized solar panel manufacturers.
The government is attempting to safeguard domestic industry while reducing reliance on imports and creating job possibilities with this approach.
