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Non-filers must pay 7.5 pc tax on electricity bills over 25,000 rupees – Journal

KARACHI: In accordance with the federal budget announcement for fiscal year 2021-22, residential consumers who are not tax filers and whose electricity bills exceed Rs 25,000 will be subject to withholding tax of 7, 5%.

A spokesperson for K-Electric said the tax went into effect on July 1 and is applicable throughout Pakistan, including the territory served by KE.

He said the withholding tax was only applicable to natural persons listed as non-filers on the taxpayer list maintained by the Federal Board of Revenue (FBR).

“Residential consumers will be subject to 7.5% withholding tax if their electricity bill is 25,000 rupees or more for any month of the fiscal year,” he added.

He said industrial and commercial consumers with a monthly bill of between Rs 500 and Rs 20,000 would be subject to withholding tax of 10pc of the amount.

“For bills over Rs 20,000, commercial consumers will have to pay 12pc of the total amount with an additional fixed charge of Rs 1,950, while industrial consumers will have to pay 5pc of the total amount with the same fixed fee,” he said. he added. .

The KE spokesperson asserted that the current changes have been applied by the federal government to consumers of all distribution companies across Pakistan, including those in Karachi and its surrounding areas. “We understand that consumers need more information about the process. Therefore, we have trained our staff through our comprehensive network of 30 customer service centers across Karachi to facilitate customers during this time. We urge our clients to ensure that they are included in the RBF active taxpayer list in order to claim this withholding tax in their annual returns.

He said residential consumers were also encouraged to visit their nearest KE customer service center to update their CNIC on their consumer bills.

Posted in Dawn, August 7, 2021

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