FBR Chief Denies Plans to Raise Taxes on Solar Panel Imports

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has dismissed speculations about imposing additional taxes on solar panel imports in the upcoming Budget 2025.

The clarification came during a session of the Senate Standing Committee on Finance held on Thursday. Responding to a question regarding tax exemptions, Langrial confirmed there is no plan to increase import taxes on solar panels.

He further highlighted that a major tax relief initiative has been announced for teachers. “From the next fiscal year, teachers will be eligible for a 25 per cent income tax rebate,” he said. He added that for the ongoing fiscal year, teachers will receive either a refund or adjustment under the same rebate policy.

Langrial also emphasized that discussions are underway with the International Monetary Fund (IMF) to provide relief to the salaried class and other sectors.

“Efforts are ongoing to secure relief for the salaried class in coordination with the IMF,” he stated.

Meanwhile, a past FBR report revealed large-scale money laundering through solar panel imports in Pakistan between 2017 and 2022. The report identified over-invoicing by 63 importers amounting to Rs 69.5 billion. Notably, companies Bright Star and Moonlight Traders allegedly transferred Rs 72.83 billion abroad while selling the panels locally for Rs 45.61 billion.

“No tax increase on solar panel imports in Budget 2025,” reaffirmed Langrial, easing concerns for the renewable energy sector.