Taxes on power

Published May 28, 2017

BESIDES suffering from lingering loadshedding and power outages of varying durations, domestic consumers are also paying as many as five taxes and surcharges on their bills apart TV fee.

These taxes, surcharges and duties are excise duty, general sales tax, Neelum Jhelum surcharge, F.C. (perhaps it is financing cost) surcharge and TR surcharge. I telephoned some Wapda officials to find out as to what TR surcharge stands for but in the first instance, there was no response from some cellular and landline numbers and one XEN who responded on the cellphone said that he was not aware of it.

Of these taxes and surcharges, TR surcharge is the heaviest and is charged on some 25 to 35pc basis of Lahore Electric Supply Company (Lesco) bill.

I have before me two latest domestic consumer bills. TR surcharge on Lesco bill of Rs7,405 is Rs870 on one bill and on the other bill of Rs7,543 , this surcharge is as much as Rs2,565. How this is worked out is not understandable.

Furthermore, it is quite painful to mention that on payable bill of Rs12,700, Lesco share is 63pc and taxes account for 37pc, more than one-third of the total bill. The other bill of Rs10,220 has Lesco share of 72pc, while taxes 28 per cent.

While the domestic consumers are being charged so heavily on account of taxes, they are not aware as to what these taxes and duties are and whether these were part of the Finance Bill 2016 when the budget for outgoing fiscal was passed by parliament in June last year.

In all fairness, the prime minister keeps taking measures to provide some relief in the power tariff but these taxes and surcharges are just too excessive and unbearable to say the least.

This matter needs urgent attention of the prime minister as paying taxes in the ratio of 25 to 36pc on electricity bills is intolerable for the salaried people.

Asmaar Bilal Lahore

Published in Dawn, May 28th, 2017

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