Pakistan's New Solar Panel Tax: Prices to Surge by 21.5%

Pakistan's Proposed Solar Panel Tax: A 21.5% Price Hike Looms Islamabad, Pakistan – June 15, 2025 – The Pakistani government's proposed budget for 2025-2026 includes a new tax on solar panels, sparking concerns about increased costs and reduced demand. The tax, a reported 18% GST plus an additional 3%, is expected to significantly impact the price of solar panels, potentially leading to a price increase of around 21.5%. "The main news relevant to us is that solar panels are being removed from the exempt list and moved to the regular list," explains a news reporter in a recent video. "This means the 18% GST that applies to normal items will also apply to solar panels starting July 1st." This price increase is likely to affect consumers and the solar industry. The reporter also notes that additional clarifications are expected regarding other duties, potentially adding even more to the cost. The government's reasoning behind the tax remains unclear, with claims of protecting the local industry, which is not currently large enough to make a significant impact. The situation highlights the complexities of balancing economic policies with environmental goals. As the government continues to clarify the details of the new tax, the solar energy sector in Pakistan awaits to see the long-term effects of this decision.