Govt to abolish provincial electricity duty from bills by July 2025

(Web Desk): The federal government has decided to abolish the provincial "electricity duty" from electricity bills.

Federal Minister for Energy, Awais Leghari, has sent letters to the chief ministers of all provinces.

In the letter, the minister stated that starting from July 2025, the collection of provincial electricity duty through electricity bills will be discontinued.

He emphasized that the aim is to reduce the tax burden on electricity bills, as consumers are often confused by multiple charges and duties included in the bills.

The letter also highlighted government efforts to lower electricity tariffs, including reviewing agreements with IPPs (Independent Power Producers) and reducing the Return on Equity (ROE) of government power plants.

Awais Leghari urged provinces to propose alternative methods for collecting the duty and stated that electricity bills should only reflect the actual cost of power consumption — which is the government's goal.

He further added that consumers should pay only for the electricity they use, and that the government seeks to eliminate additional charges.