Budget 2024-25: Govt Announces Major Relief for Solar Panels!

• Federal government proposes tax relaxations for solar panels.
• Tax relaxations are also proposed for importing feed and seed for fish and lobster farming.
• Ambitious tax revenue target set at Rs. 13 trillion for the fiscal year.

During his budget speech in the National Assembly, Finance Minister Muhammad Aurangzeb unveiled significant tax relaxations proposed by the federal government for importing raw materials for solar panels and supporting the aquaculture industry in the fiscal year 2024–25.

To stimulate local manufacturing of solar panels, the government plans to exempt taxes on the import of machinery, plants, raw materials, and components used in solar panel, inverter, and battery production.

Likewise, to foster the growth of the aquaculture sector, tax relaxations are proposed for importing feed and seed for fish and lobster farming. Additional tax incentives are highlighted for importing farming, breeding, feed mills, and processing units specific to aquaculture, aiming to enhance productivity and competitiveness, thereby contributing to food security and economic growth.

The federal government has set an ambitious tax revenue target of Rs. 13 trillion ($46.66 billion) for the upcoming fiscal year, marking a nearly 40% increase from the current year. This target aligns with the national budget’s strategy to secure a new bailout agreement with the International Monetary Fund (IMF).

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Key goals outlined in the budget include reducing the public debt-to-GDP ratio to sustainable levels and improving Pakistan’s balance of payments position. The budget also anticipates a substantial reduction in the fiscal deficit to 5.9% of GDP for the next financial year, down from the revised estimate of 7.4% for the current year.