The Federal Board of Revenue (FBR) collected approximately Rs490 billion in the form of Withholding Tax (WHT) and General Sales Tax (GST) through electricity bills during the fiscal year 2024-25. This figure represents a decrease from the Rs600 billion collected in the previous fiscal year, reflecting a broader trend in power consumption.
The decline in tax collection from electricity bills occurred alongside a 3.6 percent fall in total power usage by consumers. Electricity consumption dropped to 80,111 GWh during July–March FY25, down from 83,109 GWh in the same period of FY24.
Industrial Consumption Sees Significant Drop
A notable factor contributing to the reduced power usage was the significant decline in industrial electricity consumption. This sector’s usage fell from 28,830 GWh in FY24 to 21,082 GWh in FY25, indicating potential economic slowdown or increased energy efficiency within the industrial landscape.
Shifting Tax Burdens: Salaried Individuals and Real Estate
While electricity bill taxes saw a dip, other direct tax collection areas experienced growth:
- Salaried Individuals: Tax revenue from salaried individuals witnessed a substantial jump, rising to Rs552 billion in FY25, compared to Rs367 billion a year earlier. This indicates an increased tax burden on the salaried class.
- Real Estate Transactions: The FBR collected Rs235 billion from property transactions under sections 236C (tax on sale of property) and 236K (tax on purchase of property) of the Income Tax Ordinance. This includes Rs118 billion from 236C and Rs117 billion from 236K, showing an increase from Rs90 billion and Rs104 billion respectively in FY24.
Overall Direct Tax Collection
Overall, the FBR reported a total collection of Rs5.8 trillion in direct taxes for FY25. The corporate sector was a major contributor, accounting for Rs3.8 trillion of this amount. Within the corporate sector, the banking sector alone contributed a substantial Rs1 to Rs1.5 trillion in income and withholding taxes.
The figures highlight the FBR’s reliance on various direct and indirect tax mechanisms to meet its revenue targets, with a noticeable shift in contributions from different sectors of the economy.
