Islamabad, October 9, 2025 – The Federal Board of Revenue (FBR) has reported a significant rise in revenue from withholding tax on electricity, collecting Rs146 billion during fiscal year 2024–25.
This marks a 13.51% increase compared to Rs128.29 billion collected in the previous fiscal year, reflecting both higher energy consumption and improved compliance.
According to official data, the withholding tax on electricity is governed by Section 235 of the Income Tax Ordinance, 2001. The FBR sources clarified that minor variations may occur in the final tally as collections are recorded under multiple tax sections. The tax is collected through monthly electricity bills issued to domestic, commercial, and industrial consumers across the country.
The detailed breakdown shows that industrial consumers contributed the most, with collections soaring by 24% to Rs78.22 billion in FY25 from Rs63.24 billion a year earlier. Revenue from domestic consumers also recorded impressive growth of 37%, reaching Rs9.26 billion compared to Rs6.76 billion in FY24. In contrast, the contribution from commercial users slightly declined by 1%, falling to Rs57.69 billion from Rs58.27 billion.
Officials stated that withholding tax on electricity remains a vital source of revenue for the FBR, especially given rising energy consumption patterns in recent years. However, they cautioned that the collection under this head could slow down in the coming months as the government moves toward reducing electricity tariffs to ease the burden on consumers and stimulate industrial competitiveness.