Here are the 9 different types of taxes collected via electricity bills in Pakistan. This information is according to the tax year 2023. So let’s find out.
1. Electricity Duty
Electricity Duty, provincial duty, is levied to all consumers from 1% to 1.5% of variable charges.
2. General Sales Tax (GST)
GST is levied by the Sales Tax Act 1990 on all consumers at 17% of the electricity bill.
3. Financing Cost Surcharge
Financing Cost surcharge is charged at Rs. 0.43% per kWh applicable to all categories of consumers except lifeline domestic consumers.
4. PTV License Fee
PTV license fee is being charged at Rs. 35/- for domestic consumers and Rs. 60/- for commercial consumers in the electricity bills.
5. 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.
6. Extra Tax
Extra Tax is being charged to industrial and commercial consumers (not registered in the active taxpayer list of FBR) at 5% to 17% on difference bill amount slabs.
7. 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.
8. Income Tax
Income Tax is charged to consumers at various rates depending upon applicable tariffs and the amount of the electricity bill.
9. Sales Tax
5% to commercial consumers on bills up to Rs. 20,000 and 7.5% on bills exceeding Rs. 20,000.
Here is a summary of these taxes in tabular format:
| Sr. # | Tax/DutyFee | Detail |
|---|---|---|
| 1 | Electricity Duty | Electricity Duty, provincial duty, is levied to all consumers from 1% to 1.5% of variable charges. |
| 2 | General Sales Tax (GST) | GST is levied by the Sales Tax Act 1990 on all consumers at 17% of the electricity bill. |
| 3 | Financing Cost Surcharge | Financing Cost surcharge is charged at Rs. 0.43% per kWh applicable to all categories of consumers except lifeline domestic consumers. |
| 4 | PTV License Fee | PTV license fee is being charged at Rs. 35/- for domestic consumers and Rs. 60/- for commercial consumers in the electricity bills. |
| 5 | 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. |
| 6 | Extra Tax | Extra Tax is being charged to industrial and commercial consumers (not registered in the active taxpayer list of FBR) at 5% to 17% on difference bill amount slabs. |
| 7 | 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. |
| 8 | Income Tax | Income Tax is charged to consumers at various rates depending upon applicable tariffs and the amount of the electricity bill. |
| 9 | 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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