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.
