FBR Reportedly Turns Energy Sector into Tax Collection Agent, Reveals Heavy Taxes in Electricity Bills

Islamabad: The Federal Board of Revenue (FBR) has reportedly turned the energy sector into an indirect tax collection agent, with consumers now paying multiple taxes through electricity bills.

According to official documents, electricity bills in Pakistan include six different types of taxes, including 18 percent General Sales Tax (GST), income tax, and advance tax. Through these charges, more than Rs 900 billion is reportedly collected annually.

The documents further reveal that an additional per-unit tax is also being charged from consumers, adding to the overall cost of electricity.

The rising burden of taxes on electricity and petroleum products is being cited as one of the key reasons behind increasing energy prices in the country.

Officials note that these taxes are directly impacting domestic consumers as well as industrial and commercial users, significantly increasing the cost of electricity production and consumption across Pakistan.