ISLAMABAD: In a major relief move for the public, the federal government has announced a reduction in sales tax on solar panels from 18% to 10%. The announcement was made by Deputy Prime Minister Ishaq Dar during a session of the National Assembly as part of ongoing budget deliberations.
Speaking on the floor, Ishaq Dar stated that the government is reviewing several budget proposals following consultations with coalition partners. He emphasised that the revised tax rate on solar panels aims to encourage the adoption of renewable energy and reduce the financial burden on consumers amidst rising energy costs.
The Deputy Prime Minister also clarified that the imposition of sales tax on digital services falls under the constitutional authority of the provinces, not the federal government. This statement came in response to discussions around taxation on tech and digital platforms.
During the session, Ishaq Dar also announced a substantial increase in funding for public universities in Sindh. The allocation has been raised from Rs. 2.6 billion to Rs. 4.6 billion, reflecting the government’s commitment to higher education and regional development.
In a separate address to the Senate, Ishaq Dar discussed the tense geopolitical situation in the Middle East, particularly the ongoing conflict between Israel and Iran. He reiterated Pakistan’s longstanding position on peace, stating “Pakistan seeks a peaceful resolution to the Israel-Iran conflict and has always advocated for regional stability and diplomacy.”
Ishaq Dar concluded by stating that Pakistan’s economy is gradually stabilising, and further budgetary adjustments in the public interest are expected in the coming days. He reassured citizens that the government is committed to fiscal reforms, social welfare, and economic growth while addressing public concerns.
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