Pakistan imposes 18% tax on imported solar panels to boost local manufacturing

The federal government has presented an important proposal to promote solar panels manufactured in Pakistan in the budget for the fiscal year 2025-26, under which it has been decided to impose an 18% sales tax on imported solar panels.

According to the budget document, this move is being taken to level the playing field between local and imported solar panels, to support the solar panel manufacturing industry in Pakistan and promote the local production of renewable energy equipment.

Officials say that the local industry was under pressure due to cheap imports in the global market, due to which small and medium-sized manufacturers manufacturing solar panels in Pakistan were facing difficulties.

Through this proposal, the government is trying to increase employment opportunities and reduce import dependence by protecting the local industry.

Currently, the demand for solar energy is continuously increasing due to the energy crisis and rising electricity prices in Pakistan, but the biggest challenge facing the local industry in this sector is competing with low-cost imported panels.