Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Breaking News

President endorses FTO’s decision on excessive taxation on electricity bills

byCT Report
19/03/2024
in Breaking News, Islamabad, Latest News, Slider News
Share on FacebookShare on Twitter

ISLAMABAD: President Asif Ali Zardari has endorsed the Federal Tax Ombudsman’s decision to alleviate the miseries of power consumers by checking income tax and sales tax on electricity bills of low-income earners.

The FTO’s directive, urging the formation of a committee by the Federal Board of Revenue (FBR) to address excessive taxation on electricity bills, has received validation from the president. This decision follows the rejection of twenty representations filed by the FBR challenging the FTO’s orders.

You might also like

Pakistan, Iran agree to keep border crossings open round the clock to boost trade

15/08/2026

Rs563m bank cheques dishonored during FY 2020-21, says report

15/08/2026

Under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000, complaints were lodged by individuals, predominantly low-income earners, contesting the withholding of Income Tax and Sales Tax on their electricity bills. Despite their earnings falling below the taxable income threshold, they were subjected to various taxes, prompting them to seek recourse through the FTO.

The FTO’s investigation revealed a uniform imposition of Electricity Duty (ED) on consumers, regardless of income levels, exacerbating the financial burden on taxpayers. Furthermore, discrepancies were noted in the timely remittance of ED to Provincial Energy Departments, with instances of misuse and misallocation of collected funds.

Of particular concern was the absence of clarity regarding the legal status of ED collection by distribution companies, raising questions about the legitimacy of associated taxes levied by the FBR. Additionally, revelations of cross-provincial discrepancies and outstanding dues highlighted systemic deficiencies in the taxation framework.

To address these issues, the FTO recommended the establishment of a committee comprising members from relevant departments, including LTO, LESCO, and the Punjab Energy Department.

This committee would devise strategies to review the entire ED regime and associated taxes, aiming to provide relief to ordinary consumers and taxpayers, FTO findings further added.

The President’s decision to uphold the FTO’s directive underscores the imperative of addressing the unjust taxation burden on citizens.

It emphasizes the need for collaborative efforts among stakeholders to reformulate taxation policies, ensuring fairness and alleviating the financial strain on taxpayers.

Related Stories

Pakistan, Iran agree to keep border crossings open round the clock to boost trade

byCT Report
15/08/2026

ISLAMABBAD: Pakistan and Iran on Wednesday agreed to further expand trade ties by keeping border crossings open round the clock,...

Rs563m bank cheques dishonored during FY 2020-21, says report

byCT Report
15/08/2026

LAHORE: It has been revealed that bank cheques worth over Rs563.2 million, belonging to industrialists, have been dishonored. The audit...

FBR slaps new daily fines on delayed customs clearance starting Oct 1

byCT Report
15/08/2026

ISLAMABAD: The Federal Board of Revenue (FBR) has introduced new graded penalties for delays in filing goods declarations and clearing...

Pakistan’s foreign exchange reserves rise by $14m to $22.5b

byCT Report
15/08/2026

KARACHI: Pakistan’s total liquid foreign exchange reserves increased by $14 million during the week ended August 7, 2026, reaching $22.498...

Next Post

Punjab presents ‘mini-budget’ worth Rs4,480b

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.