ISLAMABAD: The Finance Standing Committees of both the National Assembly and the Senate have approved the removal of the proposed 18 percent General Sales Tax (GST) on the import of solar panels.
The 18 percent GST was initially introduced in the Finance Bill 2025, sparking widespread public outcry. The Sindh Government, which is already distributing solar panels to vulnerable communities in the province, strongly opposed the proposal and expressed serious concerns over its potential impact.
Finance Minister Senator Muhammad Aurangzeb and Federal Board of Revenue (FBR) Chairman Rashid Langrial defended the rationale behind the GST imposition during committee discussions. However, both committees, chaired by Pakistan Peoples Party (PPP) leaders, ultimately rejected the proposal.
According to sources, the imposition of GST on solar panel imports was originally suggested by the International Monetary Fund (IMF). Any revision to this measure, they noted, would require prior approval from the Fund.
