The Federal Board of Revenue (FBR) has clarified that no new taxes have been imposed on solar panels in the federal budget 2026-27, while noting that the rising adoption of solar energy has helped ease pressure on electricity prices for consumers.
Speaking during a technical briefing on the budget, FBR officials said the measures introduced were focused largely on enforcement and broadening the tax base rather than imposing significant new taxes.
FBR Member Inland Revenue Hamid Atiq Sarwar said the budget does not include any fresh taxation on solar panels, adding that the rapid growth of solar energy usage has played a role in protecting consumers from further increases in power tariffs across Pakistan.
He noted that a 5% tax has been proposed on income earned through social media platforms and digital content creation, including influencers and TikTok users, as part of efforts to document emerging digital income streams and expand the tax net.
Sarwar added that relief measures have been provided for freelancers and the IT sector through separate budget provisions aimed at supporting exports and strengthening the country’s digital economy.
Officials also confirmed reductions in taxes on airline tickets and online purchases made via credit cards, describing the changes as consumer facilitation measures.
For the automobile sector, new taxation proposals target vehicles with engine capacities above 2,000cc, while taxes on smaller vehicles will remain unchanged.
FBR officials said the government has set a revenue collection target of Rs15.264 trillion for the upcoming fiscal year, with a strong focus on enforcement-based measures expected to generate around Rs600 billion in additional revenue through improved compliance.
Sarwar highlighted that only around 600,000 of an estimated four million shopkeepers are currently registered with tax authorities. He clarified that the proposed trader scheme in Islamabad would not involve routine inspections of small businesses unless unusual financial discrepancies are identified.
He further noted that the government has collected Rs322 billion through the super tax, while suggesting that tax rates should gradually be rationalised to more sustainable levels in the future.
The budget also includes higher duties on e-cigarette liquids as part of broader health and revenue measures, while doctors, engineers and other professionals will continue to be taxed at a 15% rate under the existing framework.
