The National Assembly Standing Committee on Finance and Revenue was informed on Wednesday that the federal government collects around Rs. 620 billion annually from consumers through taxes charged on electricity bills.

Officials of the Federal Board of Revenue told lawmakers that the amount comes from an 18 percent General Sales Tax on electricity consumption and withholding tax imposed on monthly bills exceeding Rs. 100,000. They said the taxes are collected through power distribution companies and then deposited with the FBR.

The briefing highlighted the growing use of utility bills as a channel for tax collection at a time when the government is trying to raise revenues and improve compliance.

Electricity bills in Pakistan already carry several charges beyond the base cost of power, including fuel cost adjustments, electricity duty, television fees for eligible consumers and other surcharges.

Separately, the committee approved the Retailers Fixed Tax Scheme despite criticism from some lawmakers.

The panel was also briefed on the FBR’s AI-driven National Faceless System, which is scheduled to be introduced in phases starting from October 2026.