The federal government collects around Rs. 620 billion annually from consumers through taxes charged on electricity bills, the National Assembly’s Standing Committee on Finance and Revenue was informed on Wednesday.
Officials from the Federal Board of Revenue told lawmakers that the amount is generated through an 18 percent General Sales Tax on electricity consumption and withholding tax imposed on monthly bills exceeding Rs. 100,000. The taxes are collected through power distribution companies and deposited with the FBR.
Electricity bills in Pakistan already include multiple charges beyond the cost of power, including fuel cost adjustments, electricity duty, television fees for eligible consumers, and other surcharges. The latest disclosure highlights the growing role of utility bills as a channel for tax collection amid efforts to boost revenues and improve compliance.
Separately, the committee approved the Retailers Fixed Tax Scheme despite criticism from some lawmakers and was also briefed on the FBR’s AI-driven National Faceless System, which is scheduled to be introduced in phases beginning October 2026.
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