ISLAMABAD: The Federal Board of Revenue (FBR) has recorded a substantial increase in withholding tax collection on electricity bills, generating Rs146 billion during the fiscal year 2024–25, up 13.5% from Rs128.29 billion collected in the previous year.
The growth reflects higher energy consumption and stronger compliance among consumers.
The tax, levied under Section 235 of the Income Tax Ordinance, 2001, is collected through monthly electricity bills issued to domestic, commercial, and industrial users nationwide.
FBR officials noted that minor adjustments may occur in the final figures, as collections are reported under multiple tax heads.
A category-wise breakdown shows industrial consumers leading the surge with collections rising 24% to Rs78.22 billion, compared to Rs63.24 billion in FY24. Domestic users followed with a 37% jump to Rs9.26 billion, while commercial collections dipped slightly by 1%, totaling Rs57.69 billion.
Officials emphasized that withholding tax on electricity remains a key revenue source for FBR, reflecting the link between energy use and fiscal performance.
However, they cautioned that future collections may slow as the government considers lowering power tariffs to reduce consumer costs and enhance industrial competitiveness.







