Unequal Taxation Hits Electricity Consumers in Pakistan


Islamabad (Tanveer Hashmi): The revelation of unequal and unfair taxation on electricity consumers in electricity bills has come to light.

Electricity duty is imposed on consumers in electricity bills without any legal basis, as revealed in the inquiry by federal tax authorities. It has been found that consumers, especially low-income individuals, are bearing the burden of income tax and sales tax on their electricity bills, despite their income being below the taxable income threshold.

Regardless of consumers’ income levels, the uniform imposition of electricity duty (ED) places a significant financial burden on taxpayers. Investigations have also revealed discrepancies in electricity duty by provincial energy departments and mismanagement of collected funds.

Federal tax authorities have directed the Federal Board of Revenue (FBR) to form a committee to save consumers from excessive taxes on electricity bills and improve the implementation of taxes in bills.

The President of the country has affirmed the decision to form the federal tax authorities’ committee, maintaining the directive to FBR, which underscores the need to address the unfair burden of taxes on citizens.

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