ISLAMABAD: The federal government has decided to keep existing tax rates unchanged on solar panels, stationery items, and the stock market in the upcoming fiscal budget 2026-27.
Sources said the proposal to increase sales tax on solar panels from 10 per cent to 18 per cent has been withdrawn and will not be part of the new budget. Similarly, the suggested increase in sales tax on stationery items has also been dropped.
No changes are expected in the tax structure for the stock market starting from July 1, 2026.
However, authorities are reportedly considering raising the highest income tax slab threshold for salaried individuals and removing additional surcharges or penalties on high-income earners.
In addition, relief measures for exporters are under consideration, including the possible removal of the 1 per cent export tax. Officials indicated that special incentives for the export sector may also be announced during the budget speech.
Under the Finance Act 2024, exporters were shifted from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR), introducing a minimum 2 per cent tax on export earnings, including 1 per cent minimum tax and 1 per cent advance tax.
Industry and export stakeholders have recommended restoring the Final Tax Regime on an optional basis with a 1 per cent turnover tax, ensuring timely tax refunds, and providing relief to loss-making exporters. They have also called for protection against unnecessary Federal Board of Revenue (FBR) actions through a dedicated oversight committee.
