Electricity consumers in Pakistan have borne a substantial tax burden, paying over Rs19 trillion in taxes through various distribution companies during the past three years. This figure underscores the significant indirect taxation embedded within power bills.
In the fiscal year 2022–23, distribution companies (DISCOs) collected Rs507 billion in taxes from consumers. This amount increased sharply in 2023–24, reaching Rs698 billion under multiple tax categories. For the most recent year, tax collections from electricity users exceeded Rs700 billion.
Among the individual DISCOs, Islamabad Electric Supply Company (IESCO) collected Rs232 billion in taxes over the three-year span, while Lahore Electric Supply Company (LESCO) gathered more than Rs532 billion. Gujranwala Electric Power Company (GEPCO) recovered Rs240 billion, Faisalabad Electric Supply Company (FESCO) Rs307 billion, and Multan Electric Power Company (MEPCO) Rs323 billion from consumers.
Meanwhile, Peshawar Electric Supply Company (PESCO) collected Rs151 billion, and Hyderabad Electric Supply Company (HESCO) accounted for Rs57.58 billion in tax recoveries. Smaller and more remote region companies also contributed to the total, with Quetta Electric Supply Company (QESCO) collecting Rs24.28 billion, Tribal Electric Supply Company (TESCO) Rs1.55 billion, and Sukkur Electric Power Company (SEPCO) Rs34.46 billion during the same period.
This data highlights the heavy financial load placed on electricity consumers through indirect taxes incorporated into their electricity bills, reflecting a growing trend in tax collection by power distribution firms.
