The National Assembly and Senate Standing Committees on Finance and Revenue on Tuesday rejected the government’s proposal to impose an 18 per cent sales tax on solar panel imports.

A week earlier, Finance Minister Muhammad Aurangzeb presented the proposed budget for the fiscal year 2025-26 on the floor of the NA, revealing that an 18pc tax would be applied on imported solar panels, while online businesses and digital marketplaces would also come under the tax net.

During today’s meeting of the NA standing committee, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said that there was no sales tax on photovoltaic cells or solar panels.

“There is no tax on solar panels which are imported as complete products. If parts of solar panels are imported and manufactured here, there is a tax on it,” he said.

“Solar panels used to be very expensive, but now they have become quite cheap,” he added.

Committee chairman Syed Naveed Qamar said, “All political parties........

© Dawn Business