Policy
Income Tax on Electricity Bills: Filer vs Non-Filer (Section 235)
Non-filers pay 7.5% income tax on home bills of Rs 25,000 or more; filers on the ATL pay none. Commercial rates, and how to get the tax removed.
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The short answer
On a home connection, income tax is added only if the person the connection is registered to is not on FBR's Active Taxpayers' List (ATL) and the month's bill is Rs 25,000 or more. It is then 7.5% of the whole bill, including sales tax. Below Rs 25,000 a home bill carries no income tax, and a consumer on the ATL pays none at any amount. Shops and industry pay it whatever their filer status.
Home (domestic) connections
| Bill incl. sales tax (Rs) | Income tax (Rs) |
|---|---|
| 15,000 | 0 |
| 24,999 | 0 |
| 25,000 | 1,875 |
| 40,000 | 3,000 |
| 60,000 | 4,500 |
Zero if the monthly bill is less than Rs 25,000; 7.5% if it is Rs 25,000 or more (First Schedule, Part IV, Division IV (2)). The bill counted includes sales tax and all incidental charges (section 235, explanation). On the ATL: nothing.
The rate applies to the whole bill, not the excess
At Rs 24,999 there is no tax; at Rs 25,000 the tax is Rs 1,875. A summer bill that just crosses the line costs more than the units alone suggest.
Stopping the tax if you are a filer
- 1
Check you are on the ATL
FBR publishes the Active Taxpayers' List; you appear on it after filing your income tax return for the year. You can check your status on FBR's website or by SMS to 9966 with ATL (space) your CNIC.
- 2
Check whose name the connection is in
The exemption is for 'a domestic consumer … if his name appears on the Active Taxpayers' List' (section 235(1)). If the connection is in a landlord's or a late parent's name, your own filer status does not help until the connection is transferred.
- 3
Make sure your CNIC is on the connection
The company can only match you against the ATL if the consumer's CNIC is recorded on its system. If it is missing or wrong, update it at your sub-division office.
- 4
Still charged? Apply for a correction
Take the bill, your CNIC and proof of ATL status to your sub-division office and ask for the income tax line to be reversed, as a billing error.
Shops, offices and industry
| Bill (Rs) | Income tax (Rs) |
|---|---|
| 400 | 0 |
| 5,000 | 500 |
| 20,000 | 2,000 |
| 30,000 | 3,150 |
| 60,000 | 6,750 |
Up to Rs 500: nil. Rs 500 to Rs 20,000: 10% of the bill. Above Rs 20,000: Rs 1,950 plus 12% of the amount over Rs 20,000 (industrial: 5%). The Tenth Schedule's doubled rate for non-filers does not apply to section 235 (rule 10(i)), and being on the ATL does not remove it.
For individuals and firms (not companies), tax collected on commercial bills up to Rs 360,000 a year counts as minimum tax and is not refunded; tax on the part of a monthly bill above Rs 30,000 can be adjusted against your income tax (section 235(4)). Companies can adjust all of it. A certificate from the Commissioner that your income is exempt stops the collection (section 235(3)).
Questions
Is there income tax on a home electricity bill in Pakistan?
Only for consumers not on the Active Taxpayers' List, and only when the monthly bill is Rs 25,000 or more: 7.5% of the whole bill. Filers on the ATL pay none.
I am a filer. Why is income tax still on my bill?
Usually because the connection is in someone else's name, or the CNIC recorded on the connection is missing or wrong. Correct it at your sub-division office with proof of ATL status.
Is the 7.5% on the amount above Rs 25,000?
No. Once the bill reaches Rs 25,000, 7.5% is charged on the whole bill, including sales tax.
Is this the same as the GST on my bill?
No. GST (sales tax) is charged on every bill. Income tax under section 235 is a separate advance tax line.
This guide follows FBR's consolidated Income Tax Ordinance amended up to 20 February 2026. Budgets can change these rates each July; check the bill's income tax line against the current Finance Act if it looks different.
Sources
- [1]Income Tax Ordinance, 2001 (amended up to 20 February 2026): section 235 and Division IV, Part IV, First Schedule — Federal Board of Revenue, accessed 24 September 2026
Last verified: 24 September 2026
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Related guides
- The Cross Subsidy Program: Are You Eligible for a Protected Tariff?
- How to Apply for a New Electricity Connection in Pakistan (ENC Guide)
- How to File an Electricity Complaint in Pakistan (DISCO, PMDU & NEPRA)