Solar panels, electric vehicles and hybrid vehicles are likely to become more expensive in the new budget due to proposed increases in taxes, as the International Monetary Fund has refused to allow any tax exemptions.
Work is under way on various tax proposals for the upcoming financial year 2026-27 budget, under which concerns have been raised over a possible rise in the prices of solar panels, electric vehicles and hybrid vehicles.
According to media reports, the IMF has refused to grant tax exemptions and has proposed increasing the general sales tax on e-vehicles from 1 percent to 18 percent. A recommendation has also been made to raise the tax on hybrid vehicles from 8 percent to 18 percent.
Under the proposed plan, the general sales tax on solar panels may be increased from 10 percent to 18 percent. As a result, a significant increase is expected in the prices of electric cars, motorcycles, rickshaws, trucks, buses and other e-vehicles.
A proposal to increase taxes on electric pickups, tractors and double-cabin vehicles is also under consideration.
Meanwhile, the textile sector has demanded that the government immediately release refunds worth Rs327 billion. Industrialists have also appealed for reductions in taxes, electricity tariffs and gas rates.
The possible measure is expected to provide relief of up to Rs100 billion to exporters. However, the chances of any major relief package for the export sector remain limited.
