ISLAMABAD – Deputy Prime Minister and Foreign Minister Ishaq Dar on Wednesday announced a major revision in the federal budget, confirming that the proposed General Sales Tax (GST) on imported solar panels has been reduced from 18% to 10% following consultations with coalition partners and stakeholders.
Speaking during the National Assembly session, Dar clarified that the digital sales tax on services would remain under the jurisdiction of provincial governments, in line with the constitution. He noted that valid concerns over digital taxation were addressed through thorough engagement with stakeholders and the Federal Board of Revenue (FBR).
Dar explained that while 54% of solarisation components were already taxed under the current regime, the initial proposal of an 18% GST on the remaining 46% drew sharp criticism. In response, the government lowered the GST to 10% to encourage clean energy adoption, though he acknowledged the need for revenue balancing elsewhere.
He praised the government’s inclusive and consensus-driven approach to the budget, citing the 10% salary increase for government employees and Rs4.7 billion allocation for proposed universities in Sindh through the Higher Education Commission.
The deputy premier also confirmed that the Pakistan Infrastructure Development Company Limited (PIDCL), originally focused on Sindh, would now oversee all federal development projects across provinces. He responded positively to concerns raised about the closure of the Public Works Department (PWD).
PPP’s Syed Naveed Qamar welcomed the reduced solar tax but called for further reductions through a post-budget committee. Other PPP leaders, including Aijaz Jakhrani and Fatehullah Khan, raised issues concerning Karachi’s development, flood victim compensation, and farmer support.
The session featured calls for establishing Special Agriculture Zones, IT facilitation centres, and increased funding for minorities’ places of worship. Lawmakers from across parties voiced frustration over agricultural decline, rising input costs, and the imposition of taxes on fertilisers and solar equipment.
Several parliamentarians also condemned Israeli aggression against Iran, with JUI-F’s Abdul Ghafoor Haideri demanding justice over an attempted kidnapping involving Maulana Fazlur Rehman’s son.
The debate, now in its fifth day, highlighted nationwide demands for agricultural reform, tax relief, youth development programs, and budgetary inclusivity—especially for marginalised communities and struggling farmers.
Story by Naveed Butt | Zulfiqar Ahmad
