Islamabad, June 30, 2025 — The federal government has announced that the collection of electricity duty through power bills will be discontinued starting July 2025. The Ministry of Energy (Power Division) has urged all provincial governments to follow suit and adopt alternative mechanisms for collecting provincial levies and duties.
Federal Minister for Power Division, Sardar Awais Ahmed Khan Leghari, has formally communicated this decision to all Chief Ministers (CMs) via official letters. The minister emphasized the federal government’s commitment to making electricity bills more transparent and easier for the average consumer to understand.
According to a press release issued on Monday, the Minister highlighted that rising electricity tariffs have already placed a considerable strain on households and businesses. The additional layer of taxes, surcharges, and duties, such as the electricity duty, further complicates billing structures, making it harder for consumers to track and manage their actual energy consumption.
“This initiative is a key part of the broader reform agenda to rationalize power tariffs and streamline the billing process,” stated Leghari. He further noted that ongoing efforts to renegotiate terms with Independent Power Producers (IPPs), reduce the Return on Equity (ROE) for government-owned generation plants, and push for structural changes in the sector all align with this broader goal.
The federal minister reiterated that electricity bills should reflect the true cost of consumption alone, not serve as a catch-all for unrelated fiscal collections. “To truly simplify billing and reduce confusion, we must eliminate non-essential charges. Discontinuing the electricity duty is a step in that direction,” Leghari wrote in his letter.
He called on provincial governments to develop independent systems to collect duties and levies that are currently bundled within electricity bills. This, he said, would ensure greater fiscal transparency and restore the purpose of utility bills to reflect only electricity usage costs.
Expressing hope for collective provincial support, the Power Division maintained that coordinated action on this front will help build a more equitable and consumer-friendly energy regime across Pakistan.