ISLAMABAD: The National Assembly’s Standing Committee on Finance has rejected an 18 percent sales tax on solar panels, a measure that was included in the proposed budget for 2025-26. The lawmakers stressed the need to increase the use of solar energy, not burden it with additional taxes.
Initially intended to tax imports and local production, the proposal sparked backlash from stakeholders who warned that it would increase system costs by Rs3,000-4,000 per panel, potentially discouraging new installations. The Finance Committee’s dismissal of the measure confirms the government’s commitment to encouraging rooftop solar power and expanding net metering programs.
Industry leaders and green advocates have hailed the move as a proactive step to maintain affordability and meet Pakistan’s renewable energy and emissions reduction goals.
