Pakistan’s electricity distribution companies collected more than Rs. 700 billion in taxes through electricity bills during the fiscal year 2024–25, showing a significant rise in the tax burden passed on to consumers across the country.
According to the report, these taxes are collected directly from electricity users and then transferred to the government through utility bills. This reflects how electricity bills are increasingly being used as a major channel for tax collection in the country.
Among all companies, the Lahore Electric Supply Company collected the highest amount, over Rs. 198 billion in taxes during the year. It was followed by the Multan Electric Power Company, which collected around Rs. 118 billion.
The Faisalabad Electric Supply Company also recorded significant collections, gathering about Rs. 112 billion in taxes from consumers. Meanwhile, the Islamabad Electric Supply Company collected approximately Rs. 87.63 billion during the same period.
Other distribution companies also contributed to the total tax collection. The Peshawar Electric Supply Company collected around Rs. 50 billion, while the Hyderabad Electric Supply Company gathered nearly Rs. 20 billion through electricity bills.
In contrast, the Tribal Electric Supply Company recorded much lower collections, with only about Rs. 190 million in taxes during the fiscal year.
Experts say this growing reliance on electricity bills for tax collection highlights the government’s effort to expand revenue sources. However, it also adds pressure on households already facing high electricity costs and rising inflation.
Consumers across the country continue to express concern over increasing electricity bills, which now include multiple taxes, surcharges, and adjustments in addition to the actual cost of electricity consumption.
Economists believe that while this system helps improve tax recovery, it also increases the financial burden on ordinary citizens, making electricity less affordable for many families.
