Budget 2024-25: Pakistan govt proposes discount on solar panels

ISLAMABAD: In an effort to promote green energy, the Federal government announced on Wednesday a discount on solar panels as part of the 2024-25 financial year budget.

To meet local market demands, the government will offer discounts on solar plants, machinery, batteries, raw materials, and other components used in manufacturing solar panels locally. This initiative aims to reduce reliance on imported solar panels and conserve foreign exchange.

The budgetary document released on Wednesday indicates that sales tax exemptions and concessional rates will be abolished during the 2024-25 fiscal year.

Conversely, an 18 percent sales tax will be imposed on various categories of mobile phones. Additionally, a standard sales tax rate will be applied to multiple goods, including a withholding tax on scrap materials such as copper, coal, paper, and plastic.

Similarly, he said the government had also proposed to offer tax relaxation on the import of feed and seed for the growth of fishes and lobsters to promote the aquaculture industry in the country.

Solar panels allow consumers in Pakistan to avoid costly electricity bills and even sell electricity to the grid through net metering.

The relief will help Pakitan solar consumers to get the panels on cheaper rates.