ISLAMABAD, June 30 (APP) – The Federal Government has officially announced the end of Electricity Duty collection through power bills, effective July 1, 2025. This major step is aimed at making electricity bills more transparent and consumer-friendly.
Federal Minister for Power Division, Sardar Awais Ahmed Khan Leghari, has written letters to all Chief Ministers (CMs), urging them to support this initiative by identifying alternative methods for collecting provincial duties and levies instead of using electricity bills.
He highlighted that electricity bills currently include multiple taxes and duties, making them complex and burdensome for consumers already grappling with high power tariffs. The minister stated that this complexity makes it difficult for citizens to understand their actual power consumption costs.
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In his communication, the minister pointed out the government’s broader reforms in the energy sector, such as renegotiating Independent Power Producer (IPP) contracts, reducing the Return on Equity (ROE) for public power plants, and other structural changes aimed at lowering tariffs.
Leghari emphasized that this move is part of the government’s commitment to ensuring that electricity bills reflect only the true cost of electricity, and not serve as a channel for non-electricity-related charges.
“As part of this initiative, the Power Division has decided to discontinue the collection of Electricity Duty through electricity bills starting from July 1, 2025. We are encouraging provincial governments to develop their own independent collection mechanisms for such duties,” he said.
The minister expressed confidence that this decision will make electricity bills simpler, more transparent, and fairer, benefiting millions of consumers across the country.
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