Finance Minister Muhammad Aurangzeb on Saturday announced a reduction in sales tax on solar panels from 18 percent to 10 percent.
Winding up the discussion on the Finance Bill 2025-26 in the Senate, he said the government exercised fiscal discipline, curbed inflation, enhanced foreign exchange reserves, and improved the current account during the outgoing fiscal year.
Muhammad Aurangzeb expressed the government’s firm commitment to steer the country towards inclusive and sustainable economic growth.
He added that the Budget 2025-26 includes measures for public welfare while maintaining fiscal discipline.
The finance minister noted that federal expenditures are expected to increase by 1.9 percent in the next fiscal year, compared to 10 to 12 percent in previous years.
Following directions from Prime Minister Shehbaz Sharif, Aurangzeb said the income tax rate for those earning between 600,000 and 1.2 million rupees has been reduced from 2.5 percent to 1 percent.
Salaries have been enhanced by 10 percent and pensions of retired employees by 7 percent in the budget.
He also announced a reduction in sales tax on solar panels from 18 percent to 10 percent.
The budget for the Benazir Income Support Program has been increased to 716 billion rupees from 592 billion rupees, he said.
The finance minister appreciated the Senate Standing Committee on Finance and Revenue’s recommendations on the Finance Bill 2025-26, assuring that about 50 percent of these will be incorporated into the budget.
