The Punjab government has decided to impose an electricity duty on consumers using more than 500 kVA of electricity.
According to Express News, the Punjab Finance (Amendment) Bill 2025 has been approved by the provincial assembly without being sent to a committee. Under this bill, the electricity duty will apply to industrial and commercial consumers using more than 500 kVA.
According to the text of the bill, the electricity duty will be 4 paisa per unit. Industrial and commercial consumers using up to 500 kVA will be exempt from this duty, while organizations that have generators larger than 500 kVA will be brought into the tax net.
Under the bill passed by the Punjab Assembly, all domestic consumers will be completely exempt from the electricity duty. The duty from industrial and commercial consumers connected to the national grid will be collected through DISCOs, while those using private electricity sources will have the duty collected through Electric Inspectors. The proposed law will apply only to the commercial and industrial sectors.
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The bill will amend the Punjab Finance Act 1964, and the Governor of Punjab will give the final approval.
