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Pakistanis Are Paying These 9 Taxes on Electricity Bills

Pakistani consumers are forced to pay nine different taxes and surcharges on their electricity bills.

Caretaker Prime Minister Anwaarul Haq Kakar last week was obliged to summon an emergency meeting at the premier’s house to defuse the brewing uproar over high electricity bills on Saturday.

While public outrage continues to gather heat following reports that another big pro-IMF hike in power tariffs was near, several individuals have taken to social media to shed additional light on the number of taxes the government collects through electricity bills.

Here are the 9 different types of taxes collected via electricity bills:

Tax/Duty/Fee/Surcharges Detail

Electricity Duty Electricity Duty, a provincial duty, is levied to all consumers ranging from 1% to 1.5% of variable charges

General Sales Tax (GST) GST is levied U/S of Sale Tax Act 1990 on all consumers at the rate of 17% of the E/bill

PTV License Fee PTV License fee is being charged @Rs. 35/- for domestic consumers and Rs. 60/- for commercial consumers in the electricity bills

Financing Cost Surcharge Financing Cost Surcharge is charged @Rs. 0.43 per kWh, applicable to all categories of consumers except lifeline domestic consumers

Fuel Price Adjustment (FPA) FPA is the difference between the actual fuel charges component for a month and the reference fuel charges component. In case of positive variation, the fuel price is charged to the consumer through the electricity bill, and for negative variation, the consumer is given the benefit of the FPA as per NEPRA Notification

Extra Tax Extra Tax is being charged to industrial and commercial consumers (not registered in active taxpayer list of FBR) @5% to 17% on different bill amount slabs

Further Tax Further Tax is being charged at the rate of 3% to all consumers – having no Sales Tax Return Number (STRN) except domestic, agriculture, Bulk consumers, and street light connections

Income Tax Income Tax is being charged to consumers at various rates depending upon applicable tariffs and the amount of electricity bill

Sales Tax 5% to commercial consumers on bills up to Rs. 20,000 and 7.5% on bills exceeding Rs. 20,000

Source: Pro Pakistani