Pakistan, June 12 -- The federal government has decided not to increase sales tax on solar panels in the 2026-27 budget. The move provides relief to consumers facing high electricity costs. Solar users, businesses, and the renewable energy sector are expected to benefit significantly.

The decision comes as a major relief for households and businesses that rely on solar energy. Budget discussions had raised concerns about a possible tax increase on solar panels. However, the government chose to maintain the existing tax structure to support renewable energy adoption. Officials said the measure aligns with efforts to reduce the burden of expensive electricity.

Pakistan has witnessed rapid growth in solar energy installations during recent...