The federal budget of 2025-20126, unveiled by the Minister of Finance Muhammad Aurangzeb, turns heads with a series of new taxes – in particular on high -end products. From luxury articles to clean energy imports, the tax net widespread.
Among the most discussed measures, there is an 18% tax on imported solar panels – a decision that should increase prices and trigger a debate. Defending the decision in his speech of the National Assembly, Aurangzeb said that the tax is supposed to give a boost to the local solar industry of Pakistan, but that the critics fear that this can slow down the transition to affordable renewable energies.
Development occurs during a solar boom in Pakistan, the clear measurement capacity passing to 2,813 megawatts (MW) on March 31, 2025, according to Pakistan Economic Survey 2024-25 published on Monday.
In addition to solar panels, taxes have also been imposed on various other articles, which makes them more expensive. These articles include:
- Vehicles
- Petroleum products
- Juice
- Drinks
- sparkling water
- Mineral water
- Animal food (including dogs and cats)
- Coffee
- Chocolate
- Cereal bars
In addition, a 2% tax is offered on the sale of online items, which will also increase prices.
The new budget, presented in the National Assembly, has a total expenditure of Rs 17.57 Billions, sets a target of GDP growth of 4.2% and announces relief measures for the salaried class, while global federal expenses have been reduced by 7%.