New Taxes Coming! Pakistan intended to impose an 18% tax on imported solar panels

On Tuesday, Pakistani government announced the budget for the 2025 - 2026 fiscal year, intended to impose an 18% sales tax on imported solar panels. This will contribute to the development of local industries, finance Minister Muhammad Aurangzeb stated in his budget speech.

 

Due to the lack of large-scale and efficient solar manufacturing capabilities in Pakistan, the government's claim that the GST will protect local manufacturing "is fundamentally flawed". The association's president, Waqas Musa, said: "As the world is accelerating its move towards and undermine our climate goals."

 

This budget will be debated in the Pakistani National Assembly, aiming to obtain approval by the end of June. If the policy is eventually implemented, emerging markets will face challenges in balancing energy transition and protecting domestic industries.