Industrial and commercial consumers using more than 500 KVA to be taxed under new plan
The Punjab government has approved a plan to impose electricity duty across the province on major power consumers, according to official sources.
Who Will Pay the Duty?
The proposed electricity duty rate in Punjab will be 4 paisa per unit. It will apply only to industrial and commercial users consuming more than 500 KVA of electricity.
Those using 500 KVA or less will be exempt, and domestic users will not be charged any duty under this plan.
The government will revise the Punjab Finance Act 1964 to introduce this new step. The duty will be collected through power distribution companies (DISCOs) for those connected to the national grid, while private users producing their own electricity will pay it through electric inspectors.
Entities or companies running generators above 500 KVA will also fall under this duty once the amendment takes effect.
The bill will become law after Punjab Governor Sardar Saleem Haider Khan gives final approval.
The decision comes at a time when Lahore ranks among the world’s most polluted cities. On Tuesday, the Air Quality Index (AQI) in Lahore reached 372, while some areas crossed 600.
Other cities also recorded high pollution levels, with Faisalabad at 338, Multan at 246, and Peshawar at 206, the Met Office reported.
According to experts, the smog is caused by factory smoke, low-quality fuel, and burning of crops. The government is still trying to reduce pollution as heavy smog spreads in Punjab’s main cities.
The new Punjab electricity duty 2025 is part of the government’s plan to control energy use and generate revenue for environment and development work.
