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Budget 2025-26: Lawmakers reject solar panel tax, seek relief for small cars

26 1
19.06.2025

• Members of parliamentary committees say protectionist measures unnecessary as no one producing solar panels locally
• Omar Ayub insists tariff structure altered under IMF pressure
• Nafisa Shah slams ‘martial law-style’ FBR enforcement measures

ISLAMABAD: In a rare show of unity, parliamentary committees on Tues­day unanimously rejected the proposed 18 per cent sales tax on imported solar panels and recommended lowering tax rates on sma­ller cars to ease the burden on low-income groups.

The Senate and Natio­nal Assembly Standing Co­m­m­ittees on Finance and Revenue held parallel sessions at Parlia­ment House to conduct a clause-by-clause review of the Finance Bill 2025-26.

Both panels, chaired by Senator Saleem Mandvi­walla and MNA Naveed Qamar, respectively, proposed amendments and rejected several measures outright.

Federal Board of Rev­enue (FBR) Chairman Rashid Mahmood Lan­grial defended the solar tax, arguing it would protect domestic manufacturers. However, lawmakers pointed out that solar panels are not produced locally and questioned the need for early protectionist measures.

Mr Qamar and other members warned that taxing solar imports now would limit access to aff­ordable renewable ene­rgy and increase electri­city costs. Mirza Ikhtiar Baig asked why the government would want to deprive the public........

© Dawn Business