Federal Board of Revenue (FBR) Chairman said no new taxes had been imposed on solar panels in the federal budget and maintained that the growing use of solar energy had helped shield consumers from higher electricity costs.
Speaking during a technical briefing on Budget 2026-27, FBR Chief outlined a range of proposed tax and enforcement measures, including a 5 percent tax on income earned through social media platforms and digital content creation.
FBR Member Inland Revenue Hamid Atiq Sarwar said the budget did not contain any fresh taxation measures targeting solar panels. He argued that the increasing adoption of solar energy had played a key role in preventing a further rise in electricity prices.
The clarification comes amid public debate over taxation of the renewable energy sector, which has seen rapid growth in recent years as households and businesses increasingly turn to solar power to cope with high electricity tariffs and recurring power shortages.
Addressing the proposed tax measures, Sarwar said individuals earning income through social media platforms would be required to pay a 5pc tax.
He added that the government had also proposed taxing the income of social media influencers and content creators, including TikTok users, as part of efforts to expand the tax base and document emerging sectors of the digital economy.
FBR Chief said relief had been provided to freelancers and the information technology sector through separate budget measures aimed at promoting exports and supporting the country’s growing digital industry.
The FBR also announced reductions in taxes on airline tickets and online purchases made through credit cards, describing the move as part of broader efforts to facilitate consumers and businesses.
Regarding the automobile sector, officials said new taxation measures had been proposed for vehicles with engine capacities above 2,000cc, while tax rates for vehicles below that threshold would remain unchanged.
Mr Sarwar said the government had set an ambitious revenue collection target of Rs. 15.264 trillion for the next fiscal year and was focusing primarily on enforcement measures rather than imposing large-scale new taxes.
“Most of the measures introduced this time relate to enforcement,” he said, adding that steps worth around Rs600 billion in additional revenue were being taken through improved compliance and enforcement mechanisms.
He noted that only around 600,000 of the country’s estimated four million shopkeepers were currently registered with the tax authorities. However, he clarified that the proposed trader scheme in Islamabad would not apply to individuals owning multiple shops and that tax authorities would not conduct routine inspections of small businesses unless unusual expenditures or discrepancies were detected.
The FBR official also highlighted concerns about the current tax structure, noting that the government had collected Rs322bn through the super tax and arguing that tax rates should eventually return to more sustainable levels.
In addition, the budget proposes higher duties on e-cigarette liquids as part of the government’s efforts to discourage tobacco consumption and generate additional revenue.
Sarwar said doctors, engineers and other professionals currently remained subject to a 15pc tax rate under the existing framework.
