Govt Cuts Solar Panel Tax to 10% Under IMF Deal: Big Relief [2025 Update]
Here is the latest announcement for the people of Pakistan—under pressure from the IMF, the federal government has agreed to reduce the sales tax on imported solar panels from 18% to 10%. While a complete tax exemption was demanded, the decision to lower the tax still brings major relief, especially for low-income households and BISP beneficiaries who can now access solar systems at a more affordable price.
Read out the complete passage for more clarity about Solar Panel new prices and how the 8171 Kafalat Beneficiaries are benefited through the subsidies KP Solar Scheme.
Solar Panel Tax Cut to 10%: Budget 2025 Update
After talks with its coalition partners, the federal government agreed to lower the proposed sales tax on solar panel imports from 18 percent to 10 percent, according to sources who spoke to ProPakistani.
Lawmakers demanded that the tax rate be lowered to zero in order to fight for a full exemption. However, Pakistan is required to keep a 10 percent sales tax on goods that were previously covered under a zero-rated regime in accordance with the conditions of its agreement with the International Monetary Fund (IMF).
18% Tax On Solar Panel
The removal of the Tax will make solar systems more affordable for those who want to install them and reduce their reliance on the national grid. This comes after Finance Minister Muhammad Aurangzeb suggested in his 2025–2026 budget address that an 18 percent tariff be placed on imported solar panels to promote indigenous manufacturing.
KP Govt’s Free Solar Scheme For Ehsaas Beneficiaries
8171 Ehsaas Program is Pakistan’s most renowned Organization which holds a collective Data of millions of households who are benefited through the program’s schemes by receiving financial support on a monthly basis.
More than 1.6 million people have registered for Khyber Pakhtunkhwa’s free solar system program, according to the province’s energy department.
65,000 recipients will be chosen in each of the two phases of this program, which will provide solar power systems to 130,000 qualified participants. Those enrolled in the Benazir Income Support Program (BISP) are the program’s primary target audience.
50% Subsidy On Solar System
According to officials, customers who use up to 100 units of electricity per month can receive a 50% subsidy on solar systems, which are expected to cost about Rs200,000 each.
IMF Agreement For Solar Prices In Pakistan
Due to IMF commitments, the coalition authorities’ desire for complete exemption could not be fulfilled; however, the government has chosen to drastically reduce the proposed 18 percent levy. It is anticipated that the updated rate will be formally announced later today.
There are two main requirements under the IMF deal: when a zero-rated regime is in place, a 10 percent sales tax must be implemented; where the sales tax is currently higher than 5 percent, it must be increased to 18 percent.
Conclusion
The government’s decision to reduce the sales tax on imported solar panels from 18% to 10% under IMF pressure is a major relief for the public. It will make solar energy more affordable, especially for low-income families and BISP beneficiaries. With additional subsidies and free solar schemes from the provinces, more households can now benefit from clean and cost-saving energy solutions.
