FBR Sees Rs110B Drop in Electricity Tax FY25

Islamabad, July 07, 2025, 11:50 AM PKT — The Federal Board of Revenue (FBR) has reported a stark Rs110 billion drop in tax collection from electricity bills, falling to Rs490 billion in FY 2024–25 from Rs600 billion the prior year, per official sources cited by The News, linked to booming rooftop solar installations and slumping industrial consumption amid weak economic growth. The Economic Survey 2024–25 reveals a 3.6% drop in electricity use to 80,111 GWh from 83,109 GWh (July–March FY25 vs. FY24), driven by energy-saving measures, high tariffs, off-grid solar adoption, and slow industrial activity. Household consumption surged to 49.6% (39,728 GWh) from 47.3% (39,286 GWh), fueled by population growth, appliance use, and weather demand, while industrial use crashed to 21,082 GWh from 28,830 GWh.

In contrast, salaried individuals contributed a robust Rs185 billion rise, with Rs552 billion collected in FY 2024–25 versus Rs367 billion previously. Real estate taxes under Sections 236C and 236K fetched Rs235 billion, with Rs118 billion from 236C and Rs117 billion from 236K, up from Rs90 billion and Rs104 billion in FY 2023–24. Direct taxes totaled Rs5.8 trillion, with the corporate sector paying Rs3.8 trillion and the banking sector contributing Rs1 trillion to Rs1.5 trillion under a 55% tax rate. FBR officials note the salaried boost drives direct tax growth, but the Rs14.131 trillion target for FY 2025–26 hinges on stricter enforcement.

Web context shows declining power consumption trends (e.g., 3.6% drop per survey), while posts found on X express concern—some link solar shifts to tax losses, others question industrial decline. Critically, the narrative of “tax adjustment” may mask policy missteps—web data hints at tariff-driven avoidance, and X sentiment suggests distrust in sustainable revenue, pointing to underlying economic strain.