Federal Budget 2025-26: Tax Relief for Teachers, No New Taxes on Solar Panels, Confirms FBR Chief
Islamabad – May 30, 2025: As Pakistan gears up to unveil its federal budget for FY 2025-26, encouraging developments are underway for educators and solar energy users. The Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial announced on Thursday that significant tax relief measures are being finalized to support the salaried class and promote renewable energy.
25% Tax Rebate for Teachers
Addressing the media, Langrial revealed that teachers will be granted a 25% income tax rebate starting next fiscal year — a move expected to provide much-needed financial relief to educators amid rising inflation. He noted, however, that discussions are ongoing to determine whether the rebate will be applied as a refund or as an adjustment within the current fiscal framework.
No New Taxes on Solar Panel Imports
In a key statement regarding clean energy, Langrial clarified that the government has no plans to increase taxes on solar panels. “There is no proposal under consideration to raise the existing tax rates or impose new duties on the import of solar equipment,” he affirmed.
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This comes amid concerns that the International Monetary Fund (IMF) has recommended abolishing all tax exemptions, including those applicable to renewable energy imports. The FBR chief emphasized that while overall tax exemptions are under review, the government remains committed to supporting the education and clean energy sectors — both deemed essential for Pakistan’s long-term sustainability.
IMF Talks and Reform Legislation
Langrial also highlighted that the Senate Standing Committee on Finance has approved the Income Tax Second Amendment Bill 2025, which aims to improve tax collection efficiency while easing the burden on vulnerable groups. Efforts are ongoing to negotiate further relief with the IMF, especially for the salaried class, as part of the broader budget strategy.
Federal Budget 2025-26 to be Presented on June 10
Meanwhile, Finance Secretary Imdadullah Bosal confirmed that the federal budget for FY 2025-26 will be presented on June 10, while the Pakistan Economic Survey for FY 2024-25 will be released on June 9. In a post on his official X (formerly Twitter) account, Bosal reaffirmed the timeline, dismissing speculations about any delays.
Though dates for the Annual Plan Coordination Committee (APCC) and the National Economic Council (NEC) meetings are still being finalized, the overall budget schedule remains intact.
