Cut from 18pc to 10pc: Solar panel prices to go up 4.6pc only, Aurangzeb tells Senate

ISLAMABAD: The prices of imported solar panels would increase “only by 4.6 percent” as a result of the reduction in the tax – from 18 percent to 10 percent — on the imported solar panels, in the proposed federal budget for the upcoming financial year, Finance Minister Muhammad Aurangzeb informed the Upper House of the Parliament on Saturday.

Winding up the budget debate in the Senate, Aurangzeb said the initial decision of imposing 18 percent tax on solar panels in the proposed federal budget aimed at protecting the local industry and creating an equally competitive environment to help start indigenous production of the solar panels.

“However, after detailed deliberations in both the Houses (of Parliament), and keeping in view the recommendations of the respected members, the government, in exhibition of seriousness and flexibility, has reduced proposed tax from 18 percent to 10 percent, and it would be applicable on the imported parts of solar panels that constitute 46 percent. So, imported solar panels’ prices would increase by only 4.6 percent,” the minister said at the session, in which the Senate adopted the recommendations of the Senate Standing Committee on Finance and Revenue, before the House was prorogued.

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The minister said he received reports that some elements were involved in the hoarding of imported solar panels even before the imposition of the proposed 10 percent General Sales Tax (GST) to make more money. “This is totally condemnable. I strictly warn such elements that the government will take every possible step to ensure public interest. Nobody would be allowed to exploit the public. Strictest action would be taken against these elements,” Aurangzeb reiterated.

He requested Law Minister Azam Tarar, who was present in the House, to coordinate with the provincial governments to “bring these culprits to justice.”

The finance minister said “more safeguards” were included in the proposed federal budget in relation to the powers of Federal Board of Revenue (FBR), to prevent misuse of power, and for better enforcement to counter fraud cases.

He said the federal government’s expenditure increased by “only” 1.9 percent compared to previous years when it was recorded “sometimes 10 percent, sometimes 12 or 13 percent.”

The Benazir Income Support Programme (BISP) budget has been increased to support weakest segments of the society including widows, orphans, elderly citizens and special persons, said the finance minister, adding that decision would financially support around 10 million families.

“No mini-budget was introduced in the last financial year. We maintained fiscal discipline, controlled inflation, increased forex reserves, and brought notable improvement in the current account. The purpose of all these steps is to pull Pakistan out of the quagmire of economic uncertainty, and put it on the road to sustainable progress,” said the minister.

Like last year, this year too, more than 50 percent of recommendations of the Senate would be made part of the Finance Bill 2025, he hoped.

Earlier, Chairman Senate Standing Committee on Finance and Revenue Saleem Mandviwalla presented the report containing the committee’s recommendations regarding the Finance Bill 2025.

Some key recommendations to the government, related to the Finance Bill 2025, as shared by Mandviwalla, included, continuing rebate on the taxes on the salaries of teachers/professors, increasing minimum wage up to 50,000 rupees, reduction in taxes on salaried class, monthly allowance of Rs 10,000 monthly for special persons, not to increase taxes on 800cc vehicles, not to increase taxes on print, media and IT (information technology) services, increasing government employees’ salaries, among other recommendations.

Last year, 52 percent Senate recommendations regarding the proposed federal budget were accepted by the government, the senator said, adding that he would ensure that the government accepted more than 52 percent of the recommendations this year.

Deputy Chairman Senate Syedaal Khan presided over the Senate session.

Copyright Business Recorder, 2025