Solar panels tax hike dropped

Any proposed tax on solar panels for the financial year 2026-27 has been dropped, according to the budget documents.

Budget documents for the upcoming fiscal year have outlined key fiscal targets and spending plans, showing the total federal budget size at around Rs18.5 trillion.

According to the documents, the government is expected to collect Rs15.264 trillion in taxes during the new fiscal year.

The proposals also confirm that a plan to increase sales tax on solar panels from 10 percent to 18 percent has been dropped.

The development is seen as a relief for renewable energy consumers amid rising electricity costs and growing demand for solar installations across the country.