Tax through electricity bills not taken back: clarification

Tax through electricity bills not taken back: clarification

ISLAMABAD: The federal government on Thursday clarified that the tax through electricity bills has not been taken back so far.

A clarification has been issued through official media of the government of Pakistan that news being released by some media channels that the government has taken back the decision of tax on electricity bills.

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“It is clarified that there is no authenticity in such news and no decision has so far been taken by the govt. However talks are been held with traders and business community on taxes on electricity bills.”

The power utilities across the country have started collection of sales tax on retailers through the electricity bills for the month of July 2022.

The tax has been imposed on all commercial connections irrespective the nature of work or business at the premises where the electricity meter is installed.

READ MORE: FTO investigates tax collection through electricity bills

Following the issuance of bills for the month of July 2022 a huge resentment was seen from the retailers as well as service providers.

Service providers say that they were not liable to pay sales tax to the federal government as the provincial governments have jurisdiction over it.

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However, Finance Minister Miftah Ismail recently held talks with business community and retailers to resolve the issue.

The finance minister promised that the issue would be resolved soon. He said that bills below 150 units would not be subject to the tax. The finance minister also assured the business community that other taxes on the electricity bills would also be withdrawn once the issue of fixed tax regime for retailers was settled.

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