Tax revenue from electricity bills skyrockets to Rs 1410bn in last three years

This significant increase in electricity bill taxes reflects a growing trend in the government's revenue generation strategies

Recent official documents have disclosed that the government has collected a substantial Rs 1410 billion in taxes from electricity bills over the last three years. This revenue stream has demonstrated a significant increase in a relatively short period.

The breakdown of these figures shows a steady and remarkable rise: in 2021, the tax collected was over Rs 345 billion. This amount increased to more than Rs 461 billion in 2022 and reached a peak of Rs 603 billion in 2023, effectively doubling the tax collection rate in just two years.

It’s important to note that these taxes are over and above the actual cost of electricity. The government’s revenue includes Rs 25 billion 70 crores collected as the PTV fee and over Rs 180 billion accumulated as income tax. Moreover, consumers have had to pay an extra Rs 89 billion 69 crores in additional taxes.

This significant increase in electricity bill taxes reflects a growing trend in the government’s revenue generation strategies and highlights the financial impact on consumers.

3 COMMENTS

  1. This is not revenue-generation. This is blood-sucking of the common man. Here only 20% of the people pay electricity bills while 80% either use ‘kunda bijli’ (drawn illegally direct from the electricity wires) or enjoy free electricity worth billions (WAPDA employees, employees of DISCOs and similar others). Does this happen anywhere else in the world? Those taking pride in such revenue generation should feel guilty rather than proud over this ‘achievement’.

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