Pakistani electricity consumers are facing an overwhelming financial burden as taxes and surcharges make up a significant portion of their monthly power bills.
The documents reveal that consumers are paying an average of Rs27 per unit of electricity in the form of various taxes and surcharges. Annually, the government collects around Rs900 billion from electricity users under the head of taxes alone, placing severe pressure on households and businesses.
Of the total per-unit cost, approximately Rs8 is charged as direct taxes, while a circular debt surcharge of Rs3.23 per unit is also imposed. In addition, consumers pay Rs15.69 per unit in the form of capacity payments, which are made to power producers regardless of electricity usage.
The documents further show that electricity bills include six different types of taxes, including General Sales Tax (GST), income tax, advance income tax, and additional sales tax. Commercial consumers are subjected to further charges such as extra sales tax and retailer sales tax.
According to the data, consumers contribute Rs708 billion annually through GST alone, while Rs233 billion is expected to be collected this year under the circular debt surcharge. Furthermore, electricity users are projected to pay Rs1,946 billion in capacity payments.
Officials note that these figures do not include additional taxes imposed through monthly fuel price adjustments and fuel charges, which further increase the cost of electricity for consumers.
The disclosures have renewed concerns over the affordability of electricity, as rising taxes and fixed charges continue to inflate power bills amid ongoing economic pressures.
