9 Taxes Pakistanis Are Paying on Electricity Bills
Pakistani consumers have to pay nine different taxes and surcharges on their electricity bills.
Caretaker Prime Minister Anwaarul Haq Kakar was forced to call an emergency meeting at the Prime Minister’s House last week to quell the uproar over Saturday’s high electricity bills.
Amidst public outrage over an upcoming IMF-endorsed electricity price hike, people are using social media to reveal the government’s electricity bill taxes.
Utility bills collect the following 9 different types of taxes:
| 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 |
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