In a move designed to bolster Pakistan’s solar panel manufacturing industry, the federal government has proposed an 18% sales tax on imported solar panels for the fiscal year 2025-26. The decision, outlined in the budget document, aims to level the playing field between locally made and imported solar panels, helping to strengthen the domestic solar panel manufacturing sector.
Officials say the local industry has been struggling due to the influx of cheaper solar panels from global markets, which has put pressure on small and medium-sized manufacturers in Pakistan. The government hopes that by imposing this tax, it can promote local production of renewable energy equipment, increase employment opportunities, and reduce the country’s reliance on imports.
This tax initiative reflects the government’s commitment to supporting the domestic solar industry while encouraging the growth of renewable energy production at home.
