Govt issues warning over unfair Solar Panel price hikes
ISLAMABAD: The federal government has warned individuals against arbitrarily raising solar panel prices and has threatened strict action against those who do.
During a National Assembly session, Finance Minister Muhammad Aurangzeb addressed the issue, stating that the government reduced the GST rate on solar panels to promote affordability. He expressed concern over traders arbitrarily raising prices despite the tax relief, calling such self-imposed increases unjustified.
The finance minister warned traders against unjustified price hikes on solar panels and confirmed that the federal government will take decisive action to stop such practices.
Muhammad Aurangzeb announced a recent policy shift, calling it “good news” for those planning to install solar panels. He said the government reduced the initial 18 percent import tax to 10 percent after receiving suggestions from both parliamentary houses to encourage investment.
Muhammad Aurangzeb announced that imported solar panel prices will rise by 4.6 percent, with all budget proposals, including this tax adjustment, taking effect from July 1. He reiterated that the government will take strict action against anyone involved in unauthorized price manipulation.
On Saturday, the finance minister announced that the government had reduced the sales tax on solar panels from 18 percent to 10 percent.
Winding up the discussion on the Finance Bill 2025-26 in the Senate, Finance Minister Muhammad Aurangzeb said the government maintained fiscal discipline, controlled inflation, boosted foreign exchange reserves, and improved the current account during the outgoing fiscal year.
He reaffirmed the government’s strong commitment to driving the country toward inclusive and sustainable economic growth.
He added that the Budget 2025-26 prioritizes public welfare while upholding fiscal discipline.
The finance minister pointed out that federal expenditures will rise by only 1.9 percent in the upcoming fiscal year, a sharp contrast to the 10 to 12 percent increases seen in previous years.
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