ISLAMABAD (Web Desk) – The Federal Board of Revenue (FBR) has proposed fresh taxation measures to the International Monetary Fund (IMF) for the upcoming fiscal year 2026 , a move that could make solar panels and internet services more expensive for consumers across Pakistan.
According to reports, the proposal is part of the government’s broader plan to widen the tax net and reduce the budget deficit. The final decision will be taken after ongoing talks with the IMF conclude.
The FBR has suggested raising the General Sales Tax (GST) on imported solar panels from 10% to 18%, potentially effective from January 2026. Similarly, a hike in withholding tax on internet services from the current 15% to 18% or even 20% is under consideration.
Experts warn that these measures could put a dent in consumers’ pockets and slow down renewable energy adoption in the country.
Pakistan Solar Association Vice Chairman said that the price impact may not be immediate since market stocks are currently high and demand remains low. “Right now, panels are even being sold below cost due to oversupply. So, prices won’t jump overnight,” he explained.
At present, solar panels cost around Rs30 to Rs31 per watt in the local market. However, Khan cautioned that “any new tax on renewable energy is unacceptable,” adding that if stocks run out later, the higher tax will “definitely hit the solar industry hard.”
Solar expert Sharjeel Ahmed Silhari offered a different view, warning that higher taxes will push prices up by 10–12% and eventually dampen demand. “In Pakistan’s market, even a rumor of tax increase sends prices soaring, stock or no stock,” he said.
The FBR’s proposal to increase internet withholding tax has triggered concern among IT professionals and users alike.
IT expert Habibullah Khan noted that if the tax is raised to 18–20%, the overall tax burden on internet services will hit around 36%, making it one of the highest in the region.
“This is disastrous for Pakistan’s IT industry. Internet is no longer a luxury, it’s a necessity for freelancers and tech businesses,” he emphasized.
He added that higher taxes would drive up operational costs for IT companies and freelancers, making their services more expensive and less competitive globally.
“It’s just like raising fuel prices, when petrol goes up, everything else follows. This tax move will have a ripple effect across the digital economy.”