RETAILERS PROTEST ABOUT INFLATED ELECTRICITY BILLS COUNTRYWIDE

Commercial consumers across the country have risen in protest at the latest Sales Tax that has been billed to them via their electricity dues. The recent charge for taxes is in line with the Government of Pakistan’s measures to increase and expand its revenue base in the current fiscal year and reduce the big and fat current account deficit.

The new taxes are in line with the prior actions and commitments for GOP to secure the urgently needed bailout package. These changes were made in the Finance Act of 2022 where a fixed tax rate was implemented. While this was being implemented across Pakistan, the first utility to announce it to customers was K-Electric via a post on its social media channels, which instead drew negative attention as they were perceived that it was the only DISCO doing so.

The issue however is a nationwide problem and social media has seen a flurry of users posting about the latest surcharge under the head of Sales Tax/ Retailers Sales Tax in their electricity bills. Quite a few are annoyed with the sudden swell in their electricity bills with many posting in popular groups like Voice of Customer that has over 330,000 members from across the country. Others have tagged their respective DISCO, some with snarky comments while others are directly asking if they need to register with FBR with GEPCO in particular replying with, “Dear of course.”

https://twitter.com/nomanak421/status/1551514394684792832?s=20&t=a5cIlXf6b7oPG1bG6lD-CQ

https://twitter.com/GepcoTeam4/status/1551534525913747458

A customer from Islamabad named Rehan, whose electricity line is with Islamabad Electric Supply Cooperation (IESCO) tweeted that he had just consumed 39 units whereas his bill reflected the additional retailer’s tax at the rate of PKR 3000.

In the same tweet, Rehan, tagged the DISCO who replied saying those were fixed tax rates for retailers whose bills did not exceed PKR 30,000. Similarly, another customer with Gujranwala Electric Supply Corporation (GEPCO) raised a complaint mentioning why his electricity bill showed a PKR 6000 surcharge.

It is important to note that the charge rate for Active Taxpayers is PKR 3000 whose bill is less than or equal to PKR 30,000, whereas for inactive taxpaying retailers it is PKR 6000. Customer in other parts of the country kept sharing their frustrations about the new taxing regime. Bilal Sheikh, a customer subscribed with LESCO shared a bill under a comment in Voice of Customer. The bill displayed a low unit consumption at 7 units. Other users in the same group commented as to why his bill was inflated, with one guiding him to the relevant Mr. Bilal Sheikh, another customer with the same DISCO commented under a post in Voice of Customer.

https://www.facebook.com/groups/voiceofcustomerpk/posts/1161614134423941/

Another customer, Mustafa Samoo who is subscribed with Hyderabad Electric Supply Cooperation (HESCO) tweeted with sarcasm, saying:

Wah HESCO wah..

Unit 45

Cost of electricity Rs. 960

Sales tax Rs. 3000🤔

Total bill Rs. 5152. 😲

امپورٹڈ_حکومت_نامنظور pic.twitter.com/jjSF4iwJrH

— Mustafa samoo (@MaazZargar) July 23, 2022

While retailers grapple with their bloated bills at the start of the new fiscal year, DISCOs all around the country seem to have been left alone to deal with the onslaught of customer queries. The back and forth customers and DISCOs highlights the various case scenarios under which subscribers have to go through the ordeal of sorting out important details.
Some Islamabad residents protested the decision demanding that IESCO charge only retailers and decrying that the poor in the country could no longer operate their shops or offices either. The protest was followed by a seemingly earnest inquiry on how to temporarily close the connection:

While retailers posted about their grievance with the relevant DISCOs, another customer went on a rant about how bigger businesses who are the real thieves:

https://twitter.com/talalarif2002/status/1515006463760125957

In a recent press conference, Finance Minister Miftah Ismail commented on the brouhaha online, “there are around nine million retail shops in Pakistan and the government wanted to bring 2.5 to 3 million of these shops into the tax net. For this purpose, a new scheme has been introduced under which the income tax and sales tax that these shops had to pay are ‘fixed with their electricity bills’”. He added that under this initiative, small shops would have to pay a fixed tax of Rs 3,000 monthly and big retailers Rs 10,000. “After that, they will not be questioned on anything else.”