ISLAMABAD – The federal government has decided to remove the “Electricity Duty” from electricity bills, and Federal Minister for Energy Owais Leghari has written to all chief ministers seeking their cooperation in implementing the reform.
In the letter, Leghari highlighted the complexity caused by various taxes, charges, and duties collected through electricity bills. He urged provincial governments to support efforts to simplify billing and reduce the burden on consumers.
He noted that high electricity tariffs remain a major challenge and mentioned ongoing structural reforms, including a review of agreements with Independent Power Producers (IPPs).
The Power Division has decided to stop collecting electricity duty through bills starting July 2025. The federal minister urged provinces to adopt alternative methods for collecting provincial taxes and duties instead of using electricity bills.
He said this move would enhance transparency and make bills easier to understand, ensuring that consumers pay only for the electricity they use rather than additional unrelated charges.
Leghari also requested the chief ministers to help identify and implement alternative revenue collection methods to make this initiative successful.
