Electricity and Related Taxes in Pakistan (2025 Budget)

Electricity is an important part of daily life for both homes and businesses in Pakistan. But electricity is not just about units used. It also includes many different taxes. In the 2025 federal budget, the government made some key changes to electricity-related taxes. These changes are made to meet IMF requirements and increase tax revenue.

This article explains the latest taxes on electricity in Pakistan after the 2025 budget. It also covers unit rates, taxes on commercial users, solar taxes, and how these affect your electricity bill.

Electricity Unit Rates in Pakistan (2025)

The government has updated the unit rates for electricity in 2025. These rates vary for different types of users:

The distribution company—like LESCO or K-Electric—as well as the usage of the electricity in peak or off-peak hours determine these tariffs.

Taxes on Electricity Bills (2025 Budget)

Pakistani electricity bills feature numerous kinds of taxes. These are the principal taxes relevant following the 2025 budget:

These taxes increase the total amount a user pays each month, especially for those who use more electricity or are not on the tax filer list.

LESCO Income Tax Certificate and Other Companies

People who want to file their tax returns need proof of tax deducted on their bills. LESCO and other electricity providers offer annual income tax certificates.

How to get it:

• Visit the official website of LESCO or your electricity company.
   
• Enter your reference number or account ID.
   
• Download and print your income tax certificate.

This certificate shows the tax paid and helps when submitting your annual tax returns to FBR.

Solar Energy and Solar Tax in 2025

In recent years, many people in Pakistan started using solar energy to reduce their bills. But in the 2025 budget, the government introduced a solar tax.

Here are the details:

• People using net metering solar systems above 10kW will pay Rs. 1.75 per unit as a grid usage charge.
   
• GST of 18% continues on imported solar panels and batteries.
   
• No tax for smaller home users with solar systems under 5kW.

The aim of this tax is to make sure people who use the grid for backup still pay something for its maintenance.

Commercial Electricity Users and High Tax Burden

Businesses like shops, offices, and factories use commercial electricity, which is more expensive than domestic usage. These users face higher taxes and unit rates.

• Unit rates range from Rs. 40 to Rs. 52 per unit
   
• General Sales Tax of 15%
   
• Income tax for commercial users with bills over Rs. 30,000 is Rs. 1,500 or more
   
• Advance income tax for non-filers is 12%
   
• Unregistered businesses pay 3% extra tax

In the 2025 budget, the government increased monitoring of electricity use by businesses to catch tax evasion and bring more people into the tax system.

How 2025 Budget Changes Affect You

The new budget will affect many people across Pakistan. Here are some of the effects:

• Electricity bills may rise by 10% to 15% due to increased taxes and fuel price adjustments.
   
• Middle-income families will feel more pressure in the summer season.
   
• More people may try to install solar panels, although the new tax may slow this growth.
   
• Commercial users will face strict penalties if they are not registered with FBR.

Simple Tips to Reduce Electricity Bill

If you want to lower your bill or avoid high taxes, here are a few useful tips:

• Try to keep your usage below 300 units to avoid higher income tax.
   
• Use energy-saving devices like LED bulbs, inverter ACs, and energy-efficient fans.
   
• Become a tax filer to avoid paying extra withholding tax on large bills.
   
• Check your expected taxes using the FBR tax calculator online.
   
• If possible, invest in a solar system under 5 kW, which is currently tax-free.

Conclusion

Power costs in Pakistan are calculated using more than just use. In the budget for the year 2025, the government uses these taxes multiple times. All bills now include them. Being aware of how these taxes work is absolutely critical whether you own a home or a company. Saving money and avoiding unnecessary spending is possible when you are aware of your rights, keep track of your bills, and file your taxes.

You can get tomorrow's tasks done much more quickly if you review your power bill now.

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