Government provides relief to domestic consumers, removes electricity duty from bills

Islamabad (Web Desk): The federal government has announced that the collection of provincial electricity duty through electricity bills will be discontinued starting July 2025.

Federal Minister for Energy, Owais Laghari, has sent letters to all provincial chief ministers informing them about this decision.

Owais Laghari stated that the aim is to reduce the tax burden on consumers, as multiple charges and duties on electricity bills have caused confusion among users.

The minister’s letter also highlighted government efforts to lower electricity rates, including reviewing IPP (Independent Power Producer) agreements and reducing the return on equity for government-owned power plants.

He emphasized that electricity bills should reflect only the actual cost of electricity. Provinces have been urged to propose alternative methods for collecting their dues so that consumers only pay for the electricity they use without extra charges.