Budget 2022-23: Sales tax exempted on solar panels, agriculture machinery

ISLAMABAD: The federal government has decided to exempt the import and local supply chain of solar panels and agriculture machinery from sales tax, ARY News reported on Friday.  

The decision was announced by Finance Minister Miftah Ismail while presenting the Budget for the fiscal year 2022-23 (FY23) in the National Assembly.

Under the new budget, Miftah Ismail has proposed that families using less than 200 units of electricity will be given loans in easy installments for purchasing a solar panel.

The government is also withdrawing sales tax on agriculture machinery including tractors and the supply of wheat, maize, canola, sunflower, and rice.

Read More: Rs9.5 trillion budget presented for FY 2022-23

The government has also exempted imports of charity hospitals from sales tax. Non-profit and charity hospitals with 50 beds or above will be exempted from tax on electricity and all local supplies.

Miftah Ismail has proposed changes in customs duty, additional customs duty and regulatory duty on 400 items related to the manufacturing sector.

On the other hand, the federal government decided to impose taxes on those sending remittances abroad via credit, debit and pre-paid cards.

It has also been suggested that the filers who send money abroad through credit, debit, or pre-paid cards will have to pay 1 percent withholding tax, while for a similar transaction, non-filers will be charged 2 percent tax, he said.