ISLAMABAD (PEN) : Pakistan’s Finance Minister Muhammad Aurangzeb unveiled the federal budget for the fiscal year 2025–26, introducing a series of new taxes aimed at increasing government revenue. While the budget includes measures to provide relief to certain sectors, several items are expected to become more expensive due to the proposed tax changes.
1. Imported Solar Panels
One of the most significant changes is the imposition of an 18% sales tax on imported solar panels. The government justifies this move as a strategy to promote local manufacturing of solar panels. However, critics argue that this could hinder the adoption of renewable energy by increasing costs for consumers and businesses relying on solar power .
2. Vehicles and Hybrid Cars
The budget proposes the withdrawal of customs duty exemptions on the import of hybrid vehicles. This move aims to support domestic automotive manufacturing but is expected to lead to higher prices for hybrid vehicles, which have been popular among environmentally conscious consumers .([english.aaj.tv][2])
3. Petroleum Products
The government has proposed an increase in the petroleum levy on petrol and diesel from Rs 60 to Rs 80 per litre. This hike is expected to raise transportation costs across the country, impacting both consumers and businesses .
4. Luxury and Branded Goods
An 18% sales tax is set to be applied to high-end branded items in the textile and leather sectors. While this measure targets luxury goods, it may lead to increased prices for consumers purchasing these items
5. Online Purchases
A new 2% tax on online sales is proposed, which is expected to increase the cost of goods purchased through e-commerce platforms. This move aims to bring the growing online retail sector into the tax net but may affect consumers accustomed to lower prices online .
6. Beverages and Packaged Foods
Items such as juices, carbonated drinks, mineral water, coffee, chocolates, and cereal bars are set to become more expensive due to the imposition of new taxes. These products are commonly consumed by a wide range of consumers, and the price increases may affect household budgets .
7. Imported Fruits and Dried Fruits
The budget proposes the withdrawal of exemptions on the import of fresh and dried fruits. This change is expected to lead to higher prices for these imported goods, which are often considered luxury items in Pakistan .
The Federal Budget 2025–26 introduces several tax measures that are expected to increase the prices of various goods and services in Pakistan. While the government aims to boost local industries and increase revenue, these changes may have significant implications for consumers. It remains to be seen how these measures will impact inflation and the overall cost of living in the country.
