FBR Collected Rs476 Billion in Taxes Through Electricity Bills During Last Fiscal Year

ISLAMABAD: The Federal Board of Revenue (FBR) collected more than Rs476 billion in taxes through electricity bills during the last fiscal year, according to documents presented before the Senate Standing Committee on Finance.

The documents reveal that the total collection comprised Rs351 billion in sales tax and Rs124 billion in income tax levied on electricity consumers across various sectors.

A comparison with previous years shows that tax collections through electricity bills stood at Rs562 billion in fiscal year 2024-25, Rs515 billion in 2023-24, and Rs313 billion in 2022-23.

According to the details submitted to the committee, industrial consumers contributed Rs66 billion in withholding income tax, while commercial consumers paid Rs52 billion. Non-filer domestic consumers paid Rs4.82 billion, whereas other household consumers contributed Rs1.37 billion under Section 235A of the Income Tax Ordinance.

Of the Rs351 billion collected in sales tax, Rs269 billion was received under the normal sales tax regime, Rs55 billion as additional sales tax, and Rs16.5 billion was collected from retailers.

The figures highlight the significant contribution of electricity bill-based taxation to the country’s revenue collection framework. Taxes collected through utility bills remain one of the government’s major mechanisms for documenting economic activity and collecting indirect taxes from consumers.

The data was disclosed as part of the briefing presented to the Senate Standing Committee on Finance during its review of revenue collection and taxation matters.