The Finance Minister, Muhammad Aurangzeb, has proposed the imposition of an 18 percent import tax on solar panels in the new fiscal year budget.
In his budget speech in the National Assembly on Tuesday, he said that an 18 percent tax will be imposed on the imports of solar panels to ensure equality in competition between imported and locally manufactured solar panels.
He said that this move will play an important role in promoting the local solar panel industry in Pakistan.
According to the budget document, it has been decided to increase the tax rate on interest income by 5 percent, after which this rate will be increased from 15 percent to 20 percent. However, this increase will be applicable only to income earned through passive means, while it will not be applied to national savings schemes.
In the budget proposals imposition of tax on e-commerce or online businesses is also included. The finance minister said that tax will apply to individuals or companies that sell goods or services through online platforms. In addition, tax will also be imposed on goods and services ordered online. E-commerce entrepreneurs will have to submit complete data of their monthly transactions and tax reports to the relevant institutions.
He also proposed a 25 percent tax on income earned on loans. On the other hand, there has been no change in the tax rate on profits earned on shares, and the current system has been maintained.
The government has also decided to bring high pensioners under the tax net. People who are below the age of seventy and receive a pension of more than Rs 10 million per year will be taxed at 5 percent. But low and medium-income pensioners have been exempted from this tax.
