No new solar taxes in budget 2025-26: FBR

The Federal Board of Revenue (FBR) is actively working on tax proposals for the 2025-26 fiscal year, with Chairman Asim Mahmood confirming several key measures under consideration.

A significant proposal includes a 25% income tax rebate for teachers, which would take effect in the upcoming fiscal year.

For the current year, educators will receive either refunds or tax adjustments. The Senate Standing Committee on Finance has already approved the Income Tax (Second Amendment) Bill 2024 to facilitate these changes.

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FBR officials are engaged in discussions with the International Monetary Fund (IMF) to secure tax relief measures for salaried individuals, though final agreements remain pending.

The chairman clarified that no new taxes would be imposed on teachers or solar panel consumers in the forthcoming budget. Additionally, the government has decided against increasing import duties on solar panels or raising existing tax rates on solar equipment.

While reviewing tax exemptions across various sectors, the FBR emphasised its commitment to balancing revenue generation with economic relief measures.

The board continues to evaluate potential tax concessions for other industries, though no final decisions have been announced.

These developments come as Pakistan prepares its annual budget, with the FBR aiming to finalize tax policies that support both economic growth and public welfare. Further details will be revealed when the official budget is presented next month.