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Electricity Consumption
(1) There shall be collected advance tax at the rates specified in Division IV of Part-IV of the First Schedule on the amount of electricity bill of a commercial or industrial or domestic consumer :
Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers’ List.
(2) The person preparing electricity consumption bill shall charge advance tax under sub-section (1) in the manner electricity consumption charges are charged. Explanation.— For removal of doubt, it is clarified that for the purposes of this section electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.
(3) Advance tax under this section shall not be collected from a person who produces a certificate from the Commissioner that his income during tax year is exempt from tax or that he has discharged advance tax liability under section 147 or whose entire income is subject to final tax regime or minimum tax regime under any provisions of this Ordinance other than this section .
(4) Under this section, —
(a) in the case of a taxpayer other than a company, tax collected upto bill amount of three hundred and sixty thousand Rupees per annum shall be treated as minimum tax on the income of such persons and no refund shall be allowed;
(b) in the case of a taxpayer other than a company, tax collected on monthly bill over and above thirty thousand rupees per month shall be adjustable; and (c) in the case of a company, tax collected shall be adjustable against tax liability.
Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers’ List.
(2) The person preparing electricity consumption bill shall charge advance tax under sub-section (1) in the manner electricity consumption charges are charged. Explanation.— For removal of doubt, it is clarified that for the purposes of this section electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.
(3) Advance tax under this section shall not be collected from a person who produces a certificate from the Commissioner that his income during tax year is exempt from tax or that he has discharged advance tax liability under section 147 or whose entire income is subject to final tax regime or minimum tax regime under any provisions of this Ordinance other than this section .
(4) Under this section, —
(a) in the case of a taxpayer other than a company, tax collected upto bill amount of three hundred and sixty thousand Rupees per annum shall be treated as minimum tax on the income of such persons and no refund shall be allowed;
(b) in the case of a taxpayer other than a company, tax collected on monthly bill over and above thirty thousand rupees per month shall be adjustable; and (c) in the case of a company, tax collected shall be adjustable against tax liability.
Amendment history (24)
- Sub-section (4) omitted by the Finance Act, 2017. The omitted sub-section (4) is
- Expression inserted through Finance Act, 2020 dated 30 June, 2020
- Inserted by the Finance Act, 2021.
- Full stop substituted and proviso added by the Finance Act, 2021.
- Sub-section (1A) added by the Finance Act, 2022.
- omitted through Tax Laws (Second Amendment) Ordinance, 2022 (VI of 2022) dated 22.08.2022.
- Added by Finance Act 2017.
- The words “for the tax year” substituted by the Finance Act, 2021.
- Sub-section (4) substituted by the Finance Act, 2009. The substituted sub-section (4)
- The word “thirty thousand rupees per month” substituted by the Finance Act 2017.
- Clause (d) re-numbered by the Finance Act 2017.
- Sections 235A and 235B inserted by the Finance Act, 2014.
- Section 235A omitted by the Finance Act, 2021. The omitted section
- Section 235B omitted through Finance Act, 2020 dated 30 June, 2020 the omitted section read as
- Inserted by the Finance Act, 2015.
- The word “and” omitted by the Finance Act, 2010.
- The word “mobile“ omitted by the Finance Act, 2002.
- Full stop substituted by the Finance Act, 2010.
- The word “and” omitted by Finance Act, 2015.
- Substituted by the Finance Act, 2015
- Added by the Finance Act, 2015.
- The word “mobile” omitted by the Finance Act, 2002.
- The word “called” substituted by the Finance Act, 2003.
- Added by the Finance Act, 2010.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 479
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.