Business Desk 
Jun 06, 2025
Workers washing 300 KWP solar PV system after its installation at Nishtar Medical University and Hospital in Multan, on December 4, 2022. — APP
The Federal Board of Revenue (FBR) has finished the Finance Bill for budget 2025 26 with approximately Rs200 billion in new taxes on solar panels.
The Finance Bill includes the new 18% sales tax on the import of solar panels and e-commerce transactions.
Moreover, FBR has completed a review of items under the Sixth Schedule (exemptions) and Eighth Schedule (reduced rates) of the Sales Tax Act, with a plan to withdraw several exemptions and concessionary rates.
Notably, some cancer-related medical equipment and lifesaving drugs are expected to be added to the tax exemption list in the federal budget 2025 26.
Budget 2026 Pakistan
In budget 2026 Pakistan, FBR also plans to broaden the sales tax net for services provided within the Islamabad Capital Territory and introduce an 18% sales tax on goods manufactured in the ex-tribal areas.
Moreover, the Third Schedule of the Sales Tax Act, which mandates taxation based on printed retail prices, will be expanded to include more imported products like chocolates, coffee, and cereals.
In terms of excise duty in Pakistan budget 2026 summary, FBR is considering a 5% excise duty on ultra-processed food products.
This may cover frozen foods, chips, carbonated drinks, instant noodles, ice cream, biscuits, frozen meat, sauces, ready-made meals, and sausages.
It is worth noting that these measures are likely to be part of the fiscal year 2025-26 budget in Pakistan.
