Govt warns against unjust solar panel price hikes

ISLAMABAD: The federal government has issued a stern warning to individuals arbitrarily raising solar panel prices, threatening strict action against offenders, ARY News reported.

Finance Minister Muhammad Aurangzeb during a National Assembly session, addressed the issue, saying that the government has reduced the GST rate on solar panels to encourage affordability, making the self-imposed price increases by traders a cause for concern.

The finance minister warned those inflating solar panel prices without justification and said that the federal government will take decisive measures against such practices.

Muhammad Aurangzeb also highlighted a recent policy shift, announcing ‘good’ news for those eager to install solar panels. The finance minister said that the initial 18 percent import tax was lowered to 10 percent following suggestions from both parliamentary houses to boost investment.

Muhammad Aurangzeb said that imported solar plate prices will see a 4.6 percent increase, with all budget proposals, including this tax adjustment, taking effect from July 1.

He reiterated that stringent action will be taken against those engaging in unauthorized price manipulations.

Earlier on Saturday, the finance minister 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.