Islamabad:
The Minister of Energy, Awais Leghari, has written letters to all the main ministers about the decision to suspend the collection of electricity taxes through electricity invoices as of July 1, 2025.
In his letters, the Federal Minister sought the support of all the main ministers to eliminate the complexities derived from multiple positions, taxes and tariffs that are collected through consumer invoices.
He said that high electricity rates are already an important challenge, and the additional load of several levies further complicates the billing structure, which makes consumers difficult to understand and manage their electricity costs.
The minister also highlighted the efforts of the federal government to reduce power tariffs, including renegociating independent energy producer contracts (IPP), reduce the return of equity (ROE) for government power plants and implement other structural reforms.
“In parallel, we are also committed to simplifying electricity invoices to mainly reflect the real cost of energy consumption, instead of serving as a collection mechanism for several additional positions,” he added.
Leghari wrote that, to achieve this objective, the energy division is considering the elimination of positions not related to the electricity of consumer invoices.
“As part of this initiative, the Energy Division has decided to suspend the collection of electricity taxes through electricity invoices from July 2025. We ask the provincial governments to explore alternative mechanisms to collect provincial taxes and duties, instead of depending on electricity bills such as a collection channel,” he said.
He expressed the confidence that this movement will not only make electricity invoices more transparent and easier to understand, but ensure that consumers only pay the cost of electricity, instead of a combination of other positions.
The Minister of Energy also sought the cooperation of all the main ministers to identify and implement alternative income collection methods, which will be essential for this initiative to be a success.
