Electricity consumers across Pakistan have paid more than Rs1.9 trillion in taxes through their power bills over the last three fiscal years, according to official documents that shed light on the growing tax burden on utility users amid rising inflation and energy costs.
The documents reveal that distribution companies (DISCOs) collectively recovered over Rs1,906 billion from consumers in the form of various taxes, duties, and surcharges included in electricity bills between fiscal years 2022-23 and 2024-25.
The figures indicate a sharp increase in tax collections during the past year alone, reflecting higher electricity tariffs, increased fuel adjustment charges, and expanded indirect taxation measures imposed on power consumers.
According to the details, electricity consumers paid approximately Rs507 billion in taxes during fiscal year 2022-23. The amount increased significantly in 2023-24, when tax collections through electricity bills surged to nearly Rs698 billion.
Officials say the collections include general sales tax (GST), electricity duty, income tax, TV fee, and other government-imposed charges collected by power distribution companies on behalf of federal and provincial authorities.
Among the power companies, the highest amount was collected by Lahore Electric Supply Company, which recovered more than Rs532 billion in taxes from consumers over the three-year period.
Islamabad Electric Supply Company collected around Rs232 billion, while Faisalabad Electric Supply Company recovered approximately Rs307 billion in taxes from consumers.
Similarly, Multan Electric Power Company collected nearly Rs323 billion in taxes, while Gujranwala Electric Power Company recovered around Rs240 billion.
In Khyber Pakhtunkhwa, Peshawar Electric Supply Company collected Rs151 billion, whereas Hazara Electric Supply Company recovered more than Rs57.58 billion in taxes through electricity bills.
The documents further show that Quetta Electric Supply Company collected Rs24.28 billion in taxes, while Tribal Areas Electric Supply Company recovered Rs1.55 billion.
Meanwhile, Sukkur Electric Power Company collected approximately Rs34.46 billion from consumers in the form of taxes and duties.
Energy sector experts say the growing dependence on indirect taxation through utility bills has increased financial pressure on households already struggling with high inflation and rising living costs. Consumer groups have repeatedly called on the government to review the taxation structure in electricity bills, arguing that power consumers are being forced to bear an excessive fiscal burden.
