Tax rates on electricity consumption during TY 2022

Tax rates on electricity consumption during TY 2022

The rates of income tax on electricity for tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

Following are the rates of income tax on electricity consumption shall be applicable during tax year 2022 under Section 235:

Electricity Consumption

(1) The rate of collection of tax from commercial and industrial consumers from gross amount of bills shall be as set out in the following Table, namely:—

TABLE S. NoGross amount of BillTax
1upto Rs. 500Rs. 0
2exceeds Rs. 500 but does not exceed Rs. 20,00010% of the amount
3exceeds Rs.20,000Rs. 1950 plus 12% of the amount exceeding Rs.20,000 for commercial consumers Rs. 1950 plus 5% of the amount exceeding Rs.20,000 for industrial consumers

(2) The rate of tax to be collected on domestic electricity consumption shall be—

(i) zero percent the amount of monthly bill is less than Rs.25,000; and

(ii) 7.5% if the amount of monthly bill is Rs. 25,000 or more;

The rates of tax for domestic users under Section 235 have been amended and additional tax has been imposed on domestic electricity consumers. For further details please visit following link:

(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

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