The Federal Board of Revenue (FBR) collected Rs1.866 trillion in sales tax and income tax through electricity bills over the past four fiscal years, according to a briefing presented to the Senate Standing Committee on Finance and Revenue. The collection included Rs476.1 billion in fiscal year 2025-26 alone.
FBR Chairman Rashid Langrial said electricity receives the highest concessions despite being a major contributor to GDP, adding that taxes on the sector could increase if these benefits are rationalized.
He rejected claims that the FBR had collected Rs620 billion through electricity bills, calling such reports inaccurate.
Official data showed collections of Rs312.8 billion in FY2022-23, Rs515.5 billion in FY2023-24, Rs562 billion in FY2024-25, and Rs476.1 billion in FY2025-26. During the latest fiscal year, sales tax collection stood at Rs351.8 billion, while income tax withholding reached Rs124.4 billion through electricity distribution companies.
Senators raised concerns over rising electricity costs, saying multiple taxes had pushed per-unit prices to Rs85 and increased the financial burden on consumers. The FBR chairman said sales tax on electricity is a common global practice.
The committee also discussed banking difficulties faced by Politically Exposed Persons, with officials stressing the need for standardised procedures to address account-related issues.
