Domestic electricity consumers across Pakistan have received significant relief as the Federal Board of Revenue (FBR) announced an exemption from withholding income tax on smaller household bills.
Under the newly issued Withholding Tax Card 2025, domestic users will not be required to pay this levy if their monthly electricity bill is less than Rs25,000.
The tax card, prepared under Section 235 of the Income Tax Ordinance, 2001, outlines withholding tax rates applicable to industrial, commercial, and domestic electricity consumers. While commercial and industrial users face varying tax rates based on consumption slabs, household consumers enjoy a clear exemption below the specified threshold.
Officials explained that this measure aims to shield low-usage households from additional tax burdens while maintaining collection efficiency for higher slabs. Electricity bills that cross the Rs25,000 mark for non-Active Taxpayer List (ATL) consumers, however, will attract a 7.5% withholding tax.
Below is the table summarizing the withholding tax rates for different electricity consumer categories:
| Section | Consumer Type | Electricity Bill Amount | Tax Rate |
| 235 | Commercial & industrial | Up to Rs500 | Rs0 |
| 235 | Commercial & industrial | Rs500 – Rs20,000 | 10% of amount |
| 235 | Commercial & industrial | Above Rs20,000 | Rs1,950 + 12% (commercial) / Rs1,950 + 5% (industrial) |
| 235 | Domestic (non-ATL) | Less than Rs25,000 | Rs0 |
| 235 | Domestic (non-ATL) | Rs25,000 or more | 7.5% |
This exemption highlights the government’s attempt to balance revenue needs with public affordability in electricity billing.
Disclaimer: This article is for informational purposes only. Tax rules are subject to change, and readers are advised to consult official notifications or tax professionals for the latest updates.