How many taxes are Pakistanis currently paying in electricity bill?
ISLAMABAD: Huge protests against inflated electricity prices continued in crisis-hit Pakistan with consumers flocking across the country, burning electricity bills and chanting slogans against overpricing as the country of over 240 million faces an economic crisis, with inflation skyrocketing at 29 percent.
Inflation-weary people bear the brunt as incumbent authorities have slashed power sector subsidies in line with the IMF deal, setting new prices at record high.
As basic amount of electricity bills is linked with kilowatt-hours (kWh) or units people consume, power tariff holds huge taxes that are collected directly from the masses.
A resident of Gujranwala district shared his bill online, showing that he got the bill of Rs10,500 after consuming around 212 units last month. The bill shows that the cost of electricity was around Rs6,400.
For people consuming a bit over 200 units, Fuel Price Adjustment is around 250, a tax based on the price of fuel from which electricity was generated. In case of higher price of fuel at the time of power generation, WAPDA charge an additional amount in the next billing month.
If we break down the other charges, it starts with an electricity duty of around Rs100. An amount of Rs1,316 is being charged as General Sales Tax or GST. Income Tax would be Rs900, and there will be Rs366 in Extra Taxes.
Electricity bill explained by a common man from Gujranwala. pic.twitter.com/WlEm24mZxg
— Zulfiqar Ahmed 🤔 (@ZulfiqarAhmed69) August 27, 2023
The bill also includes Rs227 for ‘Further Taxes’, Rs365 for Sales Tax, Rs680 for FC Surcharge, and Rs115 in ‘Taxes on FPA’.
Furthermore, power consumers are charged additional taxes on their income in the utility bill if they are non-filers.