With the rejection of proposals to increase taxes on fertilizers and agricultural pesticides, Pakistan and the International Monetary Fund (IMF) are now weighing alternative tax hikes on sectors such as solar panels and internet services to shore up government revenues if collections fall short.
Sources say these “emergency tax measures” are expected to be included in the IMF’s upcoming second review report, which will be released after the Fund’s Executive Board approves the disbursement of a $1 billion tranche.
The measures would only be triggered if revenue shortfalls in the first half of the fiscal year (July–December) exceed agreed limits, or if the Ministry of Finance fails to rein in expenditures.
According to proposals submitted by the Federal Board of Revenue (FBR) to the IMF, the government could raise the General Sales Tax (GST) on imported solar panels from 10% to 18% starting January 2026, if needed. There is also consideration of increasing the withholding tax on internet services from 15% to as much as 18% or 20%.
FBR estimates suggest that imported solar panels could add 25,000 to 30,000 megawatts of electricity generation capacity in the coming years. Currently, rooftop solar installations are producing 6,000 megawatts, a figure that could double rapidly.
Officials say the government is seeking ways to limit the rapid expansion of solar energy, as reduced reliance on the national grid is driving up capacity payments, which are projected to reach Rs1.7 trillion this fiscal year.
So you want to privatize govt institutions but at the same time increase revenue 😆 🤣 😂
Just tax the rich
Internet is already taxed at almost 40%, how much more could they possibly squeeze out of the small number of fixed line subscribers? Idiotic measures that won’t even make a dent in the tax shortfalls.
Yeah just keep taxing the people rather than improving the economy of the country. Tax this, tax that, tax tax tax.
You can always tax the top rich. And not tax anything else
Internet is very slow in pakistan. minimum speed should be 100mb
Rather than doing efforts to increase the portion direct tax and target tax evading riches they put indirect tax burden on poor working class. What a shame.
I think solar panels should be further taxed and local manufacturing of modules must be emphasized. There should not be any further taxes on internet services, a sector already grippling with crisis.
More than 45 thousands megawatt by solar now in pakistan
No its just 18000 to 20000 MW only that too is installed.
Indeed Net metering or green meter ipolicy s going to dissolved near by. New Dasu Dam is also getting ready to deliver one billion hydel power electricity units per annum in upcoming couple of years.
Government always make initiative to get revenue more in short time and short way to make a burden on consumers without any discretion