In a significant financial development, taxes levied on electricity bills have emerged as a substantial source of income for the government, contributing a total of 1.41 trillion rupees in tax revenue over the past three years.
According to official documents, the tax collection rate on electricity bills experienced a notable increase, doubling over the last two years. In 2021, over 345 billion rupees were collected from electricity consumers, followed by a substantial rise to 461 billion in 2022, and an even more considerable surge to over 603 billion in 2023.
These documents further highlighted that the tax collection on electricity is in addition to the original cost incurred by consumers. In tandem with these figures, the government collected more than 25.7 billion rupees in fees from Pakistan Television (PTV) and over 180 billion rupees from income taxes during the same period.
Additionally, consumers bore an additional tax burden of 89.69 billion rupees, emphasizing the substantial financial contribution made by the public through various taxation channels.
This surge in tax revenue from electricity bills underscores the government’s reliance on this revenue stream for bolstering its fiscal position. As taxes on utilities continue to play a pivotal role in national revenue generation, it raises considerations about the impact on consumers and the broader economic landscape. The documents shed light on the increasing financial burden carried by citizens, prompting a closer examination of the taxation policies in place and their implications on the overall economy.