SHC dismisses petition against income tax collection in electricity Bills

KARACHI: The Sindh High Court (SHC) Tuesday dismissed a petition challenging income tax collection in electricity bills by K-Electric (KE), ARY News reported.

SHC heard the plea against collection of tax collection in the electricity bills.

The Sindh High Court in its verdict said the tax collection is imposed under the Finance Act and questioned whether the petitioners had challenged the act itself.

At this juncture, K-Electric’s lawyer argued that the advance income tax does not apply to residential consumers who already pay income tax.

He further clarified that electricity is a sellable commodity and, like other goods, is subject to taxation.

Regarding fuel adjustments, the lawyer explained that these are regulated according to fuel prices and often implemented months later, which could be unfair to tenants.

Read more: K-Electric imposes KMC taxes in electricity bills

The National Electric Power Regulatory Authority (NEPRA) assesses and approves fuel adjustments for a specific period, ensuring fair regulation of electricity charges.

In a separate development, Sindh Energy Minister Syed Nasir Hussain Shah said that the federal government would be requested not to impose new taxes in in electricity bills.

Syed Nasir Hussain Shah said the provincial government decided to talk to the centre regarding additional taxes in electricity bills.

“The federal government will be requested to exempt electricity bills from all kinds of taxes. If these taxes are necessary, they should be adjusted in some other way,” the energy minister added.

Syed Nasir Shah in a telephonic discussion with Chief Executive Officer (CEO) K-Electric (KE) Moonis Alvi asked him to avoid adding taxes in electricity bills.

Syed Nasir Hussain Shah said that there is a need to eliminate all types of federal and provincial taxes in the electricity bills.

The energy minister said that on the directive of Pakistan People’s Party (PPP) Chairman Bilawal Bhutto, the Sindh government wants to provide relief to the people in terms of electricity.