Karachi electricity consumers listed on the FBR Active Taxpayer List can continue to avail exemption by updating their CNIC with their KE account.
Karachi electricity consumers who are registered tax filers can continue to benefit from the 7.5 percent Advance Income Tax exemption on their K-Electric (KE) electricity bills in 2026, provided their customer records are properly updated.
K-Electric has once again reminded its customers that eligible tax filers can avoid the deduction of the 7.5 percent Advance Income Tax by ensuring their Computerised National Identity Card (CNIC) is linked with their current KE account number.
While the company recently highlighted the facility through a customer awareness campaign, it is important to note that this is not a new policy and has been in effect since the implementation of the Finance Act 2021.
Under the provisions of the Finance Act 2021, residential electricity consumers who are not included in the Federal Board of Revenue’s (FBR) Active Taxpayer List (ATL) are subject to a 7.5 percent Advance Income Tax on monthly electricity bills of Rs25,000 or more.
The measure came into force on July 1, 2021, and continues to apply under the existing tax framework unless revised by the government.
Customers who are active tax filers are exempt from this advance tax. However, to receive the exemption automatically, they must ensure that their CNIC is correctly registered against their existing KE electricity account.
If the CNIC is missing or outdated, the system may not identify the customer as an eligible tax filer, resulting in the advance tax being charged on the monthly bill.
K-Electric has advised customers to verify and update their account information whenever necessary to avoid unnecessary tax deductions.
Once the CNIC is linked with the correct electricity connection and the customer appears on the FBR’s Active Taxpayer List, the applicable exemption can be availed in accordance with government tax regulations.
Consumers are also encouraged to regularly check their taxpayer status and keep their personal details updated with both the FBR and K-Electric. Doing so can help ensure that eligible customers continue to receive the available tax relief without delays or billing discrepancies.