ISLAMABAD: The federal government has reduced the proposed General Sales Tax (GST) on imported solar panels from 18 percent to 10 percent, a move that has been lauded by clean energy advocates and industrialists. The revised rate was formally announced by Deputy Prime Minister Ishaq Dar in the National Assembly on Wednesday.
Dar revealed that the decision was taken after extensive consultation with stakeholders, including parliamentary committees and the Federal Board of Revenue (FBR). Industry sources highlighted that while about 46 percent of solar panel components were already taxed, the additional 18 percent levy would disproportionately affect affordability, leading to demands for reductions.
The Standing Finance Committee had earlier rejected the initial proposal, pressuring the government to reconsider its approach.
The revised 10% rate is intended to support Pakistan’s growing solar market, which accounts for about a quarter of the country’s electricity generation and is expanding rapidly.
Industry leaders have welcomed the development, citing potential savings for households and businesses and bolstering Pakistan’s transition to clean energy.
