Finance Minister Warns Against Unjustified Solar Panel Price Hikes, Announces Tax Relief and Economic Reforms

Islamabad:During Monday’s National Assembly session, Finance Minister Muhammad Aurangzeb concluded the debate on the upcoming fiscal year’s budget, highlighting key economic policies and tax reforms aimed at stabilizing the economy and addressing public concerns.
The Finance Minister announced that the government has prepared a balanced and people-friendly budget designed to modernize the tax system and promote economic stability. As part of this plan, digitalization is being used to introduce tax reforms, and improvements in tax laws are underway.
Aurangzeb revealed that the tax burden on salaried individuals has been reduced. The tax rate on annual income between Rs. 600,000 and Rs. 1.2 million has been lowered to just 1%, while those earning up to Rs. 3.2 million will also benefit from tax relief.
In a significant step toward promoting renewable energy, the government has reduced the GST on solar panels from 18% to 10%. However, the Finance Minister expressed concern over the artificial price hikes by some traders in the solar panel business. He issued a stern warning, stating, “The government will take strict action against those who are increasing solar panel prices without justification.”
Aurangzeb also announced that e-commerce will be brought into the tax net, with the new tax applicable only to large businesses. Small online businesses will face only a minimal tax rate. Moreover, the powers of the Federal Board of Revenue (FBR) to arrest individuals over tax fraud have been curtailed, now only permissible under three specific conditions.
To support youth skill development, the Finance Minister confirmed full funding for the Benazir Skills Development Program. He also disclosed that small farmers will be eligible for loans up to Rs. 1 million, while a new 20-year loan scheme will be launched for affordable housing.
The Minister emphasized that the government has kept expenditures under control and is actively working to protect the environment. He also noted that suggestions from the National Assembly’s Standing Committee on Finance have been incorporated into the budget to ensure that public interests are safeguarded through parliamentary consultation.