ISLAMABAD: Deputy Prime Minister Senator Ishaq Dar announced on Wednesday that the government has decided to reduce the general sales tax (GST) on imported components used in solar panels from 18% to 10% for the upcoming fiscal year.
Speaking briefly in the National Assembly, the deputy prime minister said the change comes after consultations with coalition partners and key stakeholders. “The government values consensus and, after mutual agreement, we have decided to ease the proposed taxation on solar imports,” he stated.
Senator Dar also clarified that the sales tax on services, including those related to e-commerce, will remain under the jurisdiction of provincial governments. “This matter has been settled in consultation with the Federal Board of Revenue and the business community,” he said, adding that a formal clarification would be issued during the budget’s concluding remarks.
In additional budget-related announcements, Dar assured that universities in Sindh would receive Rs4.7 billion in funding. He also revealed that the scope of the Pakistan Infrastructure Development Company Limited (PIDCL) is being expanded to include development schemes in Sindh and three other provinces. The PIDCL is the successor to the Public Works Department (PWD).
The budget session continued with lawmakers from various parties raising concerns over limited social sector spending, lack of employment safeguards, insufficient agricultural reforms, and what many called a regressive tax structure.
