Hyderabad, (PR) : President Hyderabad Chamber of Small Traders & Small Industry Muhammad Farooq Shaikhani, has penned a compelling missive to the distinguished Federal Minister for Energy (Power Division) Sardar Awais Ahmed Khan Leghari. In this eloquent letter, he earnestly seeks an equitable adjustment of income tax within electricity bills, as well as a thoughtful consideration regarding the burden of additional taxes imposed on diligent income tax contributors.
In his poignant remarks, he highlights a pressing concern, despite earnest efforts to facilitate taxpayers with income tax adjustments, a lamentable disparity persists within the billing framework. Moreover, the intricate layers embedded within electricity bills have left the business community profoundly disheartened. They grapple with the weight of exorbitant taxes levied under various guises such as fuel price adjustment, extra tax, further tax, FC surcharge, TR surcharge, and quarterly tariff adjustment, creating a labyrinthine ordeal for those striving to contribute diligently to the economy.
He stressed that the aggregation of taxes not only escalates the financial strain on consumers but also prompts inquiries into the transparency and accountability of the billing system.
Chamber President Farooq Shaikhani voiced concerns that the government has made taxes on electricity bills a source of income and according to the statistics of NEPRA, a staggering sum of 1,410 billion rupees has been amassed from consumers over the past three years. Shockingly, the rate of tax collection on electricity bills has doubled within a mere two years. In 2021 alone, over 345 billion rupees were extracted, followed by a substantial increase to 461 billion in 2022 and a staggering 603 billion in 2023. Astonishingly, these taxes are levied on top of the actual electricity charges. The burden on consumers extends beyond just taxes on electricity; they have also contributed over 25 billion rupees in PTV fees, more than 180 billion in income tax, and a staggering 89 billion rupees in additional taxes, as per official documents.
Farooq Shaikhani revealed that a significant number of entrepreneurs and industrialists affiliated with the HCSTSI have formally lodged their grievances against the taxation on electricity bills. In response, the Chamber President has requested the Federal Minister for Energy (Power Division) for clarification regarding income tax adjustments for taxpayers and the plethora of charges levied on electricity bills. These charges, including fuel price adjustment, extra tax, further tax, FC surcharge, TR surcharge, and quarterly tariff adjustment, require a meticulous breakdown for thorough understanding and resolution.
He emphasized the pivotal role of Pakistan’s business community, the unsung heroes fueling the economy through their hefty tax contributions. Yet, rather than fostering an environment conducive to business growth, the government’s strategy of balancing electricity and gas prices through increased taxation has exacerbated the burden on entrepreneurs and industrialists. This misguided approach, devoid of exemptions and incentives, is driving existing industries to closure and prompting others to relocate overseas.
