The government collects a substantial revenue of Rs954 billion annually from taxes levied on electricity bills, according to newly released documents.
Of this amount, the federal government receives Rs391 billion, while the provinces benefit from Rs563 billion.
The breakdown of the tax revenue is as follows:
General Sales Tax (GST): All consumers, including households, commercial establishments, industries, and agricultural users, are subject to an 18% GST, which contributes significantly to the total tax revenue.
Income Tax: The government garners Rs98 billion from income tax, which ranges between 10 to 12% of the electricity bills.
Advance Tax: An advance tax of 7.5% is imposed on 25,000 bills from non-filers, bringing in Rs4 billion.
Additional Tax: An additional Rs13 billion is collected through various extra tax measures.
Extra Sales Tax: A further Rs54 billion is generated from additional sales tax.
Retailers' Sales Tax: Rs9 billion are collected through a 7.5% tax on retailers.
Electricity Duty: The government collects Rs53 billion as a 1.5% duty on electricity usage.
PTV Fee: A fee of Rs14 billion is collected for Pakistan Television (PTV) services.
The total tax burden on electricity bills is spread across eight different types of taxes, with consumers paying an average of Rs9 per unit in taxes.
This comprehensive tax structure underscores the significant role that electricity bill taxes play in government revenue generation and highlights the varied sources of income derived from utility services.
