ISLAMABAD: Solar panel prices are expected to rise significantly in the upcoming federal budget, potentially making solar energy systems less affordable for households across the country.
According to sources, the International Monetary Fund (IMF) has urged Pakistan to phase out tax exemptions and concessions that primarily benefit higher-income groups.
During ongoing discussions with the government, the IMF reportedly identified solar panels, along with electric and hybrid vehicles, as products largely utilized by affluent consumers.
As part of proposed fiscal measures for the next financial year, the government is considering increasing the sales tax on solar panels from 10 per cent to 18 per cent in line with IMF recommendations. If approved, the move is likely to increase the cost of installing solar energy systems nationwide.
Sources said the government is currently negotiating a new long-term bailout programme with the IMF and faces mounting pressure to broaden the tax base and eliminate preferential tax treatments.
The proposed tax hike on solar panels is being reviewed as part of wider efforts to enhance revenue collection and meet IMF conditions.
No final decision has yet been announced, and the proposals are expected to be clarified when the federal budget is presented.
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