Following federal budget discussions, Deputy Prime Minister and Foreign Minister Ishaq Dar has announced reduction in solar panel sales tax from 18% to 10%.
In light of growing energy prices, the action seeks to alleviate consumer hardship and encourage the use of renewable energy.
Speaking at a National Assembly session, Dar also disclosed that the cabinet had decided that the first plan to raise government salaries by 6% was insufficient.
The pay increase was changed to 10% following additional consultation.
He added that it will continue to be a provincial matter to impose sales tax on digital services. On foreign policy, Dar reiterated Pakistan’s support for a peaceful resolution to the ongoing Iran-Israel conflict
Earlier, the Pakistan People’s Party (PPP) expressed its disapproval on federal government’s decision to impose an 18% tax on solar panels.
PPP central spokesman Shazia Marri voiced her disapproval of the 2025–2026 budget, saying: “We reject the 18% tax on solar panels.” The only practical substitute for pricey electricity is solar power.
The public is no longer able to view this either. Given the present rate of inflation, the salary and pension increases are minimal, Marri stated.
“Unemployment and growing prices have made people’s lives intolerable, but no help has been offered,” she stated.
“More taxes on petroleum products will further exacerbate inflation,” Marri insisted.
In light of deteriorating economic conditions, the PPP mainstay has called on the government to reevaluate its taxation policies and give public welfare top priority.
