Electricity Duty (ED) was a line that appeared on electricity bills in Pakistan for many years. It was a provincial levy, collected by the DISCOs through electricity bills on behalf of provincial governments. In 2025 the federal government announced that it would stop collecting electricity duty through electricity bills.
What electricity duty was
- A tax imposed under provincial laws (each province had its own rules).
- Usually calculated as a small percentage of the cost of electricity, with rates varying by category (residential, commercial, industrial) and province.
- Collected by DISCOs and passed to provincial governments.
The 2025 change
In mid-2025 the federal government announced that, from July 1, 2025, electricity duty would no longer be collected through electricity bills. The federal energy ministry asked provinces to find other ways to collect provincial levies. This was presented as relief for consumers and as part of simplifying electricity bills.
Do you still see ED on your bill?
If you see an electricity duty line on a bill issued after the change:
- Check the billing month — it may relate to an earlier period or arrears.
- Compare with recent DISCO and government notifications in case the policy has been revised.
- Ask your sub-division in writing for an explanation.
How ED differed from GST and other taxes
- GST is a federal sales tax on electricity.
- Income tax / further tax / extra tax are federal taxes mainly on commercial and industrial bills.
- Electricity duty was provincial, which is why its rate and exemptions varied between provinces.
Why this matters for understanding old bills
If you are comparing your current bill with bills from 2024 or earlier, remember that those older bills included electricity duty. Its removal reduced the total for many consumers, but other changes — tariff revisions, FPA and QTA — can make direct comparison difficult.
Stay updated
Tax rules on electricity bills change through budgets and government decisions. Always confirm the current position with official notifications from the Ministry of Energy, NEPRA or your DISCO.