No new tax imposed on solar energy sector, says FBR

No new tax imposed on solar energy sector, says FBR

The Federal Board of Revenue (FBR) has rejected reports that claim that a new tax has been imposed on solar panels, according to reports today.

According to the FBR, no fresh tax has been introduced on the solar energy sector. The agency also clarified that there has been no increase in electricity prices because of any such steps.

FBR officials said solar systems have helped many people reduce the burden of high electricity costs.

They also added that solar energy is supporting the growth of alternative energy sources in the country.

During a technical briefing on the 2026-27 budget, FBR Member Hamid Atiq Sarwar said the government has set a tax collection target of Rs15,264 billion for the next financial year. He further said that the target will be achieved by improving the current tax system rather than introducing new taxes.

Additionally, he stated that the government’s main focus is to bring more people into the tax net and make tax collection more effective.

He added that enforcement measures are also being strengthened and improved to increase revenue.

Solar panel systems get costlier

After a rise in the prices of solar panels in Pakistan, the cost of solar inverters and lithium batteries has also increased significantly across the country, according to reports on Wednesday. This increase in prices has made solar panel systems less affordable for many consumers.

According to market dealers, prices have surged due to concerns that the government may impose additional taxes on solar panels in the upcoming federal budget 2026-27.

Solar panels are already subject to a 10 per cent import tax, but now there are fears that new taxes will push the prices even higher, even before any official announcement.

Dealers said that the prices of 585 watt, 645 watt, and 720 watt solar panels have increased by up to Rs4,000. These panels are now being sold at prices ranging from Rs26,000 to Rs32,000.