Deputy Prime Minister Ishaq Dar has announced a major change in the government’s tax policy on solar panels. After discussions with stakeholders and growing public concern, the previously proposed 18% General Sales Tax (GST) on solar panels has now been reduced to 10%.
During a press briefing, Dar explained that 54% of solar equipment and components were already being taxed. The initial plan was to extend taxation to the remaining 46%.
However, after considering feedback from the public, industry experts, and environmental advocates, the government decided to lower the tax rate to ease the burden on consumers and support the growth of clean energy in Pakistan.
Dar emphasized the importance of making solar energy affordable and accessible for everyone. He added that the government wants to promote renewable energy sources while also balancing revenue needs.
The revised GST rate reflects a more practical approach that encourages people to switch to solar energy without facing high costs.
In addition to this, the Deputy PM also clarified the government’s stance on digital sales taxes. He said that, according to the Constitution, the authority to tax digital services belongs to the provinces, not the federal government.
This means that provincial governments will continue to manage and collect digital sales tax on services.
These decisions aim to support economic stability, protect the environment, and respect constitutional rights while also responding to public opinion and business needs. The government hopes this revised tax policy will be seen as a positive and fair step forward.
