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Sales tax on solar panels reduced from 18% to 10%

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Deputy Prime Minister and Foreign Minister Ishaq Dar announced a reduction in the sales tax on solar panels from 18 percent to 10 percent following mutual consultation during the federal budget discussions.

The move aims to promote renewable energy adoption and provide relief to consumers amid rising energy costs.

Speaking during a session of the National Assembly, Dar also revealed that the initial proposal to increase government salaries by 6% was deemed insufficient by the cabinet.

After further consultation, the salary hike was revised to 10%.

He further clarified that the imposition of sales tax on digital services will remain a provincial subject. On foreign policy, Dar reiterated Pakistan’s support for a peaceful resolution to the ongoing Iran-Israel conflict.

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