Sales Tax cut on solar panels import: Rs20bn revenue hit expected

ISLAMABAD: The government is all set to abolish sales tax on the import of solar panels having revenue impact of Rs 20 billion in 2025-26.

Another proposal is to reduce proposed sales tax from 18 percent to 10 percent on the import of solar panels. There is a strong likelihood of total abolition of the proposed 18 percent sales tax on solar panels.

The Federal Board of Revenue (FBR) is finalizing alternate revenue measures of the same amount to be presented before the Prime Minister for approval.

The FBR may propose increase in Federal Excise Duty (FED) on the imported vehicles or review lower rates of sales tax on some items in the Eight Schedule (Conditional Exemption) or Sixth Schedule (Exemption Schedule) of the Sales Tax Act.

Copyright Business Recorder, 2025