ISLAMABAD (Kashmir English): The federal government has decided to discontinue the collection of the Electricity Duty on power bills starting from July 2025 and has informed all provincial chief ministers of the decision.
In his letters written letters to all Chief Ministers, Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari has informed them to scrap the electricity duty and explore “alternative mechanisms” for collecting provincial levies and duties.
In his letters, the Federal Minister sought support of all CMs in removing the complexity of due to arising from multiple charges, taxes, and duties being collected through consumer bills, said a press release issued here on Monday.
He said that high electricity tariffs are already a significant challenge, and the additional burden of various levies further complicates the billing structure, making it difficult for consumers to understand and manage their electricity costs.
The minister, in his letters, highlighted the Federal Government’s efforts regarding various measures to reduce power tariffs, including renegotiating Independent Power Producer (IPP) contracts, lowering the Return on Equity (ROE) for government-owned power plants, and implementing other structural reforms.
He said that in parallel, we are also committed to simplifying electricity bills so that they primarily reflect the actual cost of power consumption rather than serving as a collection mechanism for various additional charges.
He expressed the confidence that this will not only make electricity bills more transparent and easier to comprehend but also ensure that consumers are paying only for the cost of electricity, rather than a mix of other charges.
The Federal Minister also sought the cooperation of all CMs in identifying and implementing alternative revenue collection methods will be instrumental in making this initiative a success.
