Pakistan, June 15 -- ISLAMABAD - The federal government plans to collect Rs20 billion in revenue next fiscal year by imposing an 18% General Sales Tax (GST) on imported solar panels and photovoltaic cells. This tax move suggests authorities expect solar imports to exceed Rs110 billion in 2025-26, despite concerns from the energy sector.

Finance Minister Muhammad Aurangzeb announced the tax during his budget speech, stating that the move aims to support domestic manufacturers and ensure fairness in the market. He noted that local solar panel assemblers already face the same tax, while imports had remained tax-free until now.

Federal Board of Revenue (FBR) Chairman Rashid Langrial told a parliamentary panel that the GST would help create ...