Govt Cuts Solar Panel Tax to 10%, Approves 10% Salary Increase

In a significant policy announcement during the federal budget session, Deputy Prime Minister and Foreign Minister Ishaq Dar revealed that the government has reduced the sales tax on solar panels from 18% to 10%. The move, made after mutual consultations, aims to boost the use of renewable energy and make solar technology more affordable for the masses amid soaring electricity prices.

“This step will help promote clean energy and bring much-needed relief to consumers,” said Dar while addressing the National Assembly.

Dar also disclosed that the initially proposed 6% increase in government employee salaries was revised to 10% following cabinet concerns over inflation and cost-of-living pressures.

On fiscal matters, he emphasized that sales tax on digital services will remain a provincial matter, ensuring no federal interference in the domain of digital taxation.

Turning to foreign affairs, Dar reiterated Pakistan’s commitment to peace and diplomacy in light of the ongoing Iran-Israel conflict, advocating a peaceful resolution through dialogue and restraint.