Electricity consumers in Pakistan are reportedly paying up to Rs9 per unit in additional taxes, raising concerns over the growing financial burden on both domestic and industrial users.
According to reports, the Federal Board of Revenue (FBR) has increasingly relied on the energy sector as a major source of tax collection, leading to multiple levies being imposed through electricity bills. Consumers are currently charged under six different tax categories included in their monthly bills.
These taxes include an 18 percent General Sales Tax (GST), income tax, advance income tax, and several other duties and surcharges that significantly increase the overall cost of electricity.
Energy experts say the practice of collecting taxes through utility bills has made electricity increasingly unaffordable for ordinary citizens already struggling with inflation and high living costs.
Industrial stakeholders have also warned that rising electricity charges are hurting production costs and reducing the competitiveness of local businesses.
The revelation comes at a time when Pakistan’s power sector is already facing challenges including circular debt, rising fuel costs, and lower electricity consumption due to expensive tariffs.
Consumers and business groups have urged the government to review the taxation structure on electricity bills and provide relief to the public, arguing that excessive taxation is adding to economic pressure across the country.
