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Eight hidden taxes other than surcharges being charged in electricity bills

by
1 January 2024, 03:52 am
in Business
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Eight hidden taxes other than surcharges being charged in electricity bills
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ISLAMABAD: Electricity bills in the country come with more than just surcharges, as revealed by documents from the Power Division.

Apart from the additional fees, consumers, spanning domestic, commercial, industrial, agricultural, and bulk categories, are subject to eight distinct types of taxes.

According to the Power Division’s documentation, an 18% general sales tax is levied on all consumers. Meanwhile, commercial and industrial consumers face a 10% income tax on bills ranging from Rs19,000 to Rs20,000.

For non-filer household customers with bills exceeding Rs25,000, an advance income tax of 7.5% is imposed. Additionally, inactive commercial and industrial customers are subject to an extra sales tax ranging from 5% to 7%. Commercial customers, with bills surpassing Rs20,000, are hit with a 7.5% retailer sales tax.

It’s important to note that these eight types of taxes are in addition to other charges like fuel price adjustments, quarterly adjustments, and various surcharges. This comprehensive taxation structure applies uniformly across diverse consumer categories, making it imperative for individuals and businesses alike to be aware of the multiple layers of charges embedded in their electricity bills.

IESCO RESORTS TO 6-8 POWER LOAD-MANAGEMENT

Meanwhile, the Islamabad Electric Supply Company (IESCO) has resorted to six to eight hours of power load-management in all operation circles of the company due to a gap in demand and supply.

According to IESCO spokesperson, load management would be ended after the restoration of normal supply to the company from the national grid system.

The company regretted the inconvenience to the valued consumers, he said.

He said the load management schedule has already been uploaded at the IESCO website www.IESCO.com.pk.

 

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