Tax Rates of Electricity & Telephone Bills in Pakistan for TY 2024

Understanding utility taxes can be complex. This guide simplifies the tax structure for electricity and telephone connections in Pakistan for the 2024 tax year, empowering you to plan your bills effectively.

Electricity Consumption Taxes:

The tax rate on your electricity bill depends on your consumption and consumer category:

  • Commercial & Industrial Consumers:
    • No tax for bills up to Rs. 500.
    • 10% tax on the amount exceeding Rs. 500 but below Rs. 20,000.
    • Rs. 1950 + 12% tax on the amount exceeding Rs. 20,000 (commercial).
    • Rs. 1950 + 5% tax on the amount exceeding Rs. 20,000 (industrial).
  • Domestic Consumers:
    • No tax for bills less than Rs. 25,000.
    • 7.5% tax on the amount exceeding Rs. 25,000.

Telephone & Internet Taxes:

A flat 15% tax is applicable to:

  • Monthly bills exceeding Rs. 1,000 for landline phones.
  • The sale price of internet prepaid cards or recharge units.
  • The sale of mobile phone prepaid cards or recharge units.

Key Takeaways:

  • Electricity tax rates vary based on consumption and consumer type (commercial, industrial, domestic).
  • There’s no tax on domestic electricity bills below Rs. 25,000.
  • Landline phone bills exceeding Rs. 1,000 and all prepaid recharge options for phones and internet are taxed at a flat 15%.

Staying Informed:

This guide provides a general overview. Consult with your utility provider or relevant tax authorities for the latest information and any regional variations.

By understanding these taxes, you can better manage your utility bills and budget for your household or business expenses.

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