ISLAMABAD: Solar panels are expected to become significantly more expensive in the upcoming federal budget as the government considers increasing sales tax from 10% to 18%, according to sources.
Sources say the International Monetary Fund (IMF) has raised strong objections to various tax exemptions and has called for their immediate removal, particularly those benefiting what it describes as “elite consumption.”
Officials claim the IMF has placed electric vehicles, hybrid cars, and solar panels in the category of luxury or non-essential items, arguing that tax relief on such goods should be withdrawn.
As a result, proposals under consideration reportedly include raising the sales tax on solar panels to 18%, which could make solar energy systems more expensive for consumers.
Sources further indicate that the government is currently negotiating a new long-term bailout program with the IMF, and increasing the tax base along with removing exemptions has become a key condition, leaving limited fiscal space for alternative measures.
