Rs5 sales tax on electricity per unit imposed, how much will you pay now?
The Federal Board of Revenue (FBR) has imposed a sales tax of Rs5 per electricity unit on 100 manufacturers, melters, re-rollers and composite units in Pakistan’s iron and steel sector. The move is expected to increase production costs and may lead to higher prices of steel products.
The FBR has issued a new Sales Tax General Order for the steel industry. Under the new order, selected companies in the sector will have to pay Rs5 per unit of electricity consumed.
Who will pay the Rs5 sales tax on electricity?
Power distribution companies (DISCOs) will collect the sales tax through electricity bills. The tax will apply to melters, re-rollers and composite units that meet the specified condition related to scrap imports.
According to the FBR, the purpose of this measure is to make the tax system in the steel sector more effective. The order will be implemented under the notification issued on August 4, 2026.
Why has FBR imposed the new tax on the steel sector?
Industry experts believe the additional tax may increase production expenses for affected companies. If manufacturers pass on the extra cost, steel products could become more expensive for buyers.
The new tax is aimed at improving tax collection in the steel industry. However, it may also increase manufacturing costs, which could affect steel prices in the market.
K-Electric has introduced a new cash-free bill payment facility, allowing customers to pay electricity bills without carrying cash.
The new service aims to save customers’ time and make the bill payment process easier. The company said the facility will provide a faster and more convenient payment option.
According to K-Electric, customers can now visit selected customer care centres and pay their electricity bills through POS machines. Payments can be made instantly using debit or credit cards.
The company said customers will no longer need to keep cash with them or wait in long queues at banks and other payment centres. The new system is designed to provide a smoother billing experience.
Also read: Pakistan targets 90% clean electricity by 2035 with new plan
Under the facility, customers can use several major cards for payments, including PayPak, Mastercard, Visa and UnionPay. This will allow more people to access digital payment options easily.
K-Electric management said payment through POS machines is not only quick but also secure. The company believes the service will help provide better and more modern facilities to consumers.
