As Pakistan readies its federal budget for the fiscal year 2025-26, key updates have emerged, especially concerning educators and users of solar energy systems.
Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial confirmed on Thursday that the government is finalizing tax relief initiatives focused on easing financial pressure on salaried individuals and promoting renewable energy adoption.
Langrial announced that teachers would receive a 25% income tax rebate starting from the next fiscal year. He mentioned that discussions are ongoing to determine whether this relief will be applied as a refund or adjusted within the current financial year.
Regarding solar panels, Langrial clarified that the government has no plans to impose new taxes on their import, nor is there any proposal to raise the existing tax rates. He reiterated that while a broader review of tax exemptions is underway, sectors such as education and clean energy remain priorities due to their long-term significance.
He further noted that the Senate Standing Committee on Finance has already passed the Income Tax Second Amendment Bill 2025. This legislation aims to enhance tax collection while protecting low-income and essential sectors from undue burden.
Talks are also progressing with the International Monetary Fund (IMF) to negotiate additional relief measures, especially for salaried individuals. The government is exploring further concessions for key economic areas as part of its overall budget strategy.
However, the IMF recently recommended ending all tax exemptions, including those for solar panels, in line with its goal of establishing a more consistent and broad-based tax system.
Meanwhile, preparations for the federal budget are in full gear. Finance Secretary Imdadullah Bosal confirmed that the budget will be presented on June 10, 2025. He also noted that the Pakistan Economic Survey for FY25 is scheduled for release on June 9, despite some flexibility in the dates of the Annual Plan Coordination Committee (APCC) and National Economic Council (NEC) meetings.
