Govt Reduced Proposed 18% Tax on Solar Panels in Pakistan

Tax on Solar Panels in Pakistan: The federal budget 2025-2026 introduced new taxes in various regions in Pakistan, including taxes on hybrid cars, small cars and solar panels. According to latest updates, taxes on hybrid cars were rejected by the government. In addition, 18% tax on solar panels in Pakistan was proposed on a large scale imports of solar panels. However, Ishaq Dar Deputy Prime Minister of Pakistan announced a lower tax rate during a National Assembly session.

Let’s have a detailed look at the new tax rate in Pakistan!

Reduction in the Proposed Tax on Solar Panels in Pakistan

The federal government has finally announced a reduction in the tax on solar panels in Pakistan. The Deputy Prime Minister Ishaq Dar said in National Assembly session that the government has agreed to lower the tax rate from 18% to 10% on import of solar panels this year, which also bring some relief for the people with the reduction of 8% from initial proposal.

Also read: On-Grid Solar System: Everything You Need to Know

In Pakistan, lots of people are switching to solar panels in Pakistan and getting them installed. As solar panels are the best energy-efficient solution and help in the reduction of electricity bills, the initially proposed 18% tax would have been a nightmare for people. 

Considering all of this, the imposed tax on the import of solar panels was also suggested to support the local manufacturers of Pakistan. In addition, higher sales tax on solar panels will result in a significant decrease in the number of people opting for this energy source. 

Also read: Guide to Buy the Right Solar Panel System for Your Home Now

Solar Panel Prices in Pakistan

If you are planning to buy solar panels in Pakistan, also check out the current and expected prices that you need to know:

Brand	600-Watt Panels	Existing Price Range	Expected Price Range
Jinko	Tiger Neo N-Type Bifacial	Rs. 21,000 to Rs. 25,000	Rs. 23,000 to Rs. 27,500
Canadian	TOPHiKu6 600W Panel	Rs. 21,000 to Rs. 23,000	Rs. 23,000 to Rs. 25,500
Trina	Vertex N-Type Bifacial	Rs. 19,000 to Rs. 23,000	Rs. 21,000 to Rs. 25,500

As mentioned in the above table, the prices of some of the best solar panels in Pakistan are still expected to increase after the implementation of this new tax on solar panels in Pakistan.

Also read: Solar Inverter Price in Pakistan 2025: The Ultimate Guide

Conclusion

To sum up, the tax on solar panels in Pakistan in the federal budget 2025-26 are reduced from 18% to 10%. This tax reduction of 8% compared to the initial proposal of 18% will help people in making decisions when buying solar panels in Pakistan. However, if you are planning to buy solar panels in Pakistan, you should take advantage of this energy efficiency solution by choosing the right type of solar panels in Pakistan. 

Also read: Solar Panel Efficiency: Important Factors To Consider Now