Punjab govt approves new electricity duties

LAHORE: The Punjab Assembly has passed the Punjab Finance (Amendment) Bill 2025, which levies a new electricity duty on industrial and commercial consumers with a more than 500 kVA.

The provincial assembly passed the Punjab Finance (Amendment) Bill 2025 without being referred to a committee.

Under the new law, industrial and commercial users who have crossed the 500 kVA limit will be charged 4 paisa per unit.

Exemption would remain for the consumers using up to 500 kVA, whereas institutions using generators above 500 kVA will also be brought into the tax net.

Tax Officials

The bill ensures that all domestic consumers are fully exempt from the duty, while for the industrial and commercial users who are connected to the national grid, the duty would be collected through distribution companies.

For consumers receiving private electricity, the amount is to be collected by electric inspectors. The bill amends the Punjab Finance Act 1964 and will now go to the Governor of Punjab for final approval. The new duty is targeted to broaden the tax base in the commercial and industrial sectors.