Pakistanis Are Paying Up to Rs. 9 Per Unit in Hidden Electricity Taxes

Pakistani electricity consumers are paying up to nearly Rs. 9 per unit in additional taxes and charges as the Federal Board of Revenue increasingly uses power bills as a tool for tax collection.

Reports indicate that multiple taxes are being imposed on electricity consumers through utility bills, adding further financial pressure on both households and industrial users already struggling with high power costs.

Electricity bills currently include six different categories of taxes and duties, including 18 percent General Sales Tax, income tax, and advance income tax.

The growing tax burden means consumers are effectively paying nearly Rs. 9 per unit in additional taxation on top of electricity tariffs and fuel adjustment charges.

Higher electricity taxation has remained a major concern for businesses and consumers, with industries repeatedly warning that rising energy costs are hurting competitiveness, increasing production expenses, and slowing economic activity.