Taxes imposed on electricity bills have emerged as a significant revenue stream for the government, revealing a staggering collection of Rs 1410 billion over the last three years. According to official documents, the tax collection rate on electricity bills experienced a twofold increase in just two years. In 2021, more than 345 billion in taxes were collected from electricity consumers, followed by a substantial rise to over 461 billion in 2022 and a further surge to 603 billion in 2023. The documents also highlight that the tax recovery is separate from the actual cost of electricity. A notable portion of this revenue, amounting to Rs 25 billion 70 crores, was collected as PTV fee, while more than 180 billion was garnered in terms of income tax. Consumers bore an additional burden of Rs 89 billion 69 crores in extra taxes.

Credit: Independent News Pakistan (INP)