Govt decides to scrap 'electricity duty' from power bills
Business
Leghari urged provincial governments to shift towards alternative methods for collecting their taxes
ISLAMABAD (Dunya News) - In a move to simplify power bills and ease the burden on consumers, the federal government has decided to do away with the 'electricity duty' charged in electricity bills.
Federal Minister for Energy Awais Leghari has written to all provincial chief ministers, urging them to cooperate in removing unnecessary taxes, duties, and charges collected through power bills.
In his letter, Leghari pointed out that high electricity rates remain a major challenge, and called for structural reforms, including a review of agreements with Independent Power Producers (IPPs).
He stated that the Power Division had decided to end the collection of electricity duty through bills starting July 2025. The minister also mentioned plans to eliminate other non-electricity related charges from consumer bills.
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Leghari urged provincial governments to shift towards alternative methods for collecting their taxes and duties instead of using electricity bills as a channel.
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He emphasized that this step would not only make the bills more transparent and easier to understand, but also ensure that consumers were only paying for the electricity they actually use, without hidden charges.
The energy minister asked for active cooperation from all provinces to identify and implement new ways of collecting provincial revenue, making this reform effort a success.
