Electricity consumers pay over Rs19trln in taxes over past three years, figures reveal

ISLAMABAD: New figures have revealed that electricity consumers in Pakistan have paid more than Rs19 trillion in taxes over the past three years through various distribution companies.

According to the data, distribution companies (DISCOs) collected Rs507 billion in taxes from consumers during 2022–23.

In 2023–24, the amount rose significantly, with DISCOs collecting Rs 698 billion under various tax heads. In the most recent year, electricity consumers reportedly paid over Rs 700 billion in taxes.

Among individual companies, IESCO collected Rs232 billion in taxes from consumers over the three-year period, while LESCO collected more than Rs532 billion.

GEPCO recovered Rs240 billion, FESCO Rs307 billion, and MEPCO Rs323 billion from electricity users.

PESCO collected Rs 151 billion, while HESCO’s tax collection stood at Rs57.58 billion.

K-Electric-like smaller and remote region companies also contributed, with QESCO collecting Rs24.28 billion, TESCO Rs1.55 billion, and SEPCO Rs34.46 billion over the same period.

The data highlights the significant burden placed on electricity consumers through indirect tax recoveries embedded in power bills.