Pakistanis Paid Rs476bn in Taxes Through Electricity Bills in FY2025-26

ISLAMABAD, July 30, 2026: Pakistan’s electricity consumers paid more than Rs476 billion in taxes through their monthly power bills during the 2025-26 financial year, according to official figures presented before the Senate Standing Committee on Finance and Revenue.

The documents revealed that the Federal Board of Revenue (FBR) collected Rs476.1 billion through electricity bills, including Rs351.8 billion in sales tax and Rs124.4 billion in withholding income tax. The disclosure comes at a time when households and businesses continue to face rising electricity costs and growing concern over the number of taxes and charges included in power bills.

Power Bills Generated Rs1.87 Trillion in Taxes Over Four Years

The documents submitted to the Senate panel showed that the FBR collected a combined Rs1.866 trillion in sales and income taxes through electricity bills over the past four financial years.

While collections declined from the previous fiscal year, they remained significantly higher than the amount recorded in FY2022-23.

Industrial, Commercial Consumers Paid Largest Share of Income Tax

Of the Rs124.4 billion collected as withholding income tax through electricity bills:

• Industrial consumers: Rs66 billion
• Commercial consumers: Rs52 billion
• Non-filer domestic consumers: Rs4.82 billion
• Other domestic consumers (Section 235A): Rs1.37 billion

The withholding tax is collected by electricity distribution companies on behalf of the FBR under the applicable tax laws.

Sales Tax Accounted for More Than Three-Quarters of Total Collection

The Rs351.8 billion collected in sales tax comprised:

• Normal sales tax: Rs269.1 billion
• Additional sales tax: Rs55 billion
• Further tax: Rs16.5 billion
• Retailers’ sales tax: Approximately Rs11 billion

Sales tax accounted for more than 73% of the total amount collected through electricity bills during the financial year.

The figures were shared during a meeting of the Senate Standing Committee on Finance and Revenue, where lawmakers reviewed the tax burden on electricity consumers. The disclosure is expected to fuel further debate over the growing number of taxes and statutory charges included in monthly electricity bills as Pakistan continues efforts to strengthen revenue collection.

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