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Govt. Forces People to Pay Extra 9 Taxes on Electricity Bills

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Islamabad: The government has been imposing a staggering total of nine different taxes and charges on an average Electricity bill, according to the reports. The number of taxes the government receives through power bills has been further explained by a number of consumers on social media. The public outcry over speculations that a substantial pro-IMF increase in electricity rates was about to occur is still on the rise.

Below are the 9 different types of taxes collected through electricity bills:

  • Sales Tax
  • Extra Tax
  • Income Tax
  • Further Tax
  • Electricity Duty
  • PTV License Fee
  • General Sales Tax (GST)
  • Financing Cost Surcharge
  • Fuel Price Adjustment (FPA)

Read More: 80% Spike in Electricity Prices Observed Since 2022

Here is the detailed table for these 9 tax types that consumers were forced to pay:

Sr. No.Tax/Duty/Fee/SurchargesDetail
1Sales Tax5% to business customers on invoices up to Rs. 20,000 and 7.5% on invoices over Rs. 20,000.
2Extra TaxCommercial and industrial customers (not registered on the FBR’s active taxpayer list) are subject to extra taxes ranging from 5% to 17%, depending on the bill amount slabs.
3Income TaxConsumers pay income tax at varied rates based on the applicable tariffs and the amount of their electricity bill.
4Electricity DutyAll consumers must pay electricity duty, a provincial tax that ranges from 1% to 1.5% of variable prices.
5PTV License FeeIn the electricity bills, the PTV License Fee is charged at Rs. 35 for household consumers and Rs. 60 for commercial consumers.
6General Sales Tax (GST)All consumers are liable for the United States Sale Tax Act of 1990’s 17% of the E/bill rate for GST.
7Financing Cost SurchargeExcept for lifeline domestic consumers, a financing cost surcharge of Rs. 0.43 per kWh is imposed on all other categories of consumers.
8Fuel Price Adjustment (FPA)FPA is the discrepancy between the reference and actual fuel charges component for a given month. In case of positive variation: the fuel price is added to the customer’s electricity bill In case of negative variation: the customer receives the FPA benefit per NEPRA Notification
9Further TaxIt is being charged at the price of 3% to all consumers – having no Sales Tax Return Number (STRN) except domestic, agriculture, Bulk consumers, and street light connections.

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The post Govt. Forces People to Pay Extra 9 Taxes on Electricity Bills appeared first on Al Sadat Marketing.



This post first appeared on Faisal Town Phase 2, please read the originial post: here

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