The Pakistan Solar Association, the Lahore Tax Bar Association, and solar energy consumers have strongly opposed reports of a proposed increase in sales tax on solar equipment from 10 percent to 18 percent in the upcoming Federal Budget 2026-27.
Speaking at a press conference in Lahore, representatives of the organizations urged the government to avoid imposing additional taxes on the solar sector and instead introduce incentives to encourage the adoption of clean and affordable energy.
Stakeholders argued that solar energy has played a vital role in helping millions of consumers reduce electricity costs while easing pressure on the national power grid. They warned that increasing the General Sales Tax (GST) on solar equipment would discourage investment in renewable energy and negatively impact Pakistan’s long-term energy goals.
According to the speakers, the rapid expansion of solar energy across the country has improved power supply conditions and helped Pakistan save an estimated $12 billion in oil and gas import costs over the past four years.
Consumer representatives noted that many middle-class households have invested in solar systems using personal savings or bank financing to cope with rising electricity tariffs and frequent power outages. They argued that imposing higher taxes on solar equipment would place an additional burden on consumers who have already made significant investments to reduce their energy expenses.
The groups called on the federal government to reject the proposed GST increase, review its taxation policy for renewable energy products, and introduce measures that promote greater access to solar technology.
They emphasized that supporting the solar sector through tax incentives and policy stability would help accelerate the transition to clean energy, reduce dependence on imported fuels, and provide long-term economic benefits for the country.
