Electricity Bills Taxes in Pakistan: A Breakdown of Government Revenue

Electricity bills taxes are a significant source of revenue for the government in Pakistan. According to recent documents, the government collects an annual revenue of Rs 954 billion from taxes on electricity bills. But have you ever wondered what types of taxes are imposed on electricity bills and how much revenue is generated from each tax?

Types of Taxes Imposed on Electricity Bills

There are eight types of taxes imposed on electricity bills in Pakistan, including:

– PTV fee
– Electricity duty
– Retail sales tax
– Miscellaneous taxes
– Extra sales tax
– Advance tax on non-filers
– Income tax
– General sales tax

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Government Revenue from Electricity Bill Taxes

The government generates significant revenue from each of these taxes. Here is a breakdown of the revenue generated from each tax:

– PTV fee: Rs 14 billion
– Electricity duty: Rs 53 billion
– Retail sales tax: Rs 9 billion
– Miscellaneous taxes: Rs 13 billion
– Extra sales tax: Rs 54 billion
– Advance tax on non-filers: Rs 4 billion
– Income tax: Rs 98 billion
– General sales tax: Rs 391 billion (federal) and Rs 563 billion (provincial)

Tax Rates for Different Consumer Categories

The tax rates vary for different consumer categories, including domestic, commercial, industrial, and agricultural consumers. The general sales tax rate is 18% for all consumer categories.

By understanding the types of taxes imposed on electricity bills and the revenue generated from each tax, consumers can better understand their electricity bills and the role of taxes in the overall cost of electricity.