As Pakistan prepares to unveil its federal budget for the fiscal year 2025-26, promising developments are on the horizon for teachers and solar panel users.
The chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, confirmed on Thursday that tax relief measures are being finalised to ease the burden on the salaried class and promote sustainable energy usage.
Speaking to the media, Langrial announced that teachers will receive a 25% income tax rebate starting from the next financial year — a move hailed as a welcome relief for educators struggling with rising living costs. However, he added that discussions are ongoing regarding whether this relief will be offered as a refund or an adjustment in the current fiscal year.
On the issue of renewable energy, the FBR chief clarified that no decision has been made to impose additional taxes on the import of solar panels, and there is no proposal to increase the existing tax rate on them.
Also Read: Budget 2025-26 not being postponed: Finance secy
Langrial emphasized that while tax exemptions across various sectors are currently under review, the government is mindful of promoting sectors like education and clean energy, which are crucial for long-term development.
He further stated that the Senate Standing Committee on Finance has already approved the Income Tax Second Amendment Bill 2025, paving the way for reforms aimed at improving revenue collection while minimizing pressure on vulnerable groups.
Efforts are also underway to negotiate further relief with the International Monetary Fund (IMF), particularly for the salaried class, and talks continue to explore concessions for other key sectors as part of the budget strategy, he remarked.
A day ago, the IMF recommended the abolition of all tax exemptions, including those currently granted for solar panels, reflecting the IMF's push for a more uniform tax regime.
Also Read: Solar panels, agri inputs may lose tax relief under IMF plan
Meanwhile, preparations for Pakistan’s upcoming federal budget for the fiscal year 2025-26 are in full swing, with Finance Secretary Imdadullah Bosal confirming that the budget will be presented on June 10.
Speaking informally with the media on Thursday, Bosal stated that while the date for the Annual Plan Coordination Committee (APCC) meeting has not been finalised, and the National Economic Council (NEC) meeting date may still be subject to change, the budget schedule itself is firming up.
However, later, he posted on his official X account that the federal budget would be announced on June 10. "As communicated earlier, the upcoming Federal Budget FY26 is on schedule to be announced on June 10, 2025. Similarly, the upcoming Pakistan Economic Survey FY25 is scheduled to be announced on June 9, 2025."
