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Electricity consumers in Pakistan are facing an added burden of up to nearly Rs. 9 per unit in taxes and duties as the Federal Board of Revenue increasingly relies on power bills to collect revenue.

The additional charges are being applied through utility bills and are affecting both domestic and industrial consumers at a time when electricity costs are already under pressure from base tariffs and fuel price adjustments.

According to available details, electricity bills currently include six separate categories of taxes and duties, among them the 18 percent General Sales Tax, income tax, and advance income tax. These levies are significantly increasing the final amount paid by consumers each month.

The growing reliance on electricity bills as a tax collection tool means users are paying substantially more than the actual cost of power consumed, further intensifying financial pressure on households and businesses.

The development comes as the government continues to pursue revenue-enhancing measures under wider fiscal reforms and commitments linked to its economic adjustment program. The push is aimed at improving tax collection and reducing the budget deficit, but it is also raising concerns over the rising cost of electricity for end-users.

Higher taxation on power bills has remained a major issue for consumers and the business community, particularly industrial users who say elevated energy costs are hurting competitiveness, raising production expenses, and slowing economic activity.

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