Govt of Punjab Approves New Electricity Duty on Users

The Punjab Assembly has passed the Punjab Finance (Amendment) Bill 2025, introducing a new electricity duty on industrial and commercial consumers using more than 500 kVA of power. The Punjab Finance (Amendment) Bill 2025 was passed by the provincial assembly without being referred to a committee. Under the new law, a duty of 4 paisa per unit will be levied on industrial and commercial users exceeding the 500 kVA threshold. Those using up to 500 kVA will remain exempt, while institutions operating generators above 500 kVA will also be brought into the tax net. The bill ensures that all domestic consumers are fully exempt from the electricity duty. For industrial and commercial users connected to the national grid, the duty will be collected through distribution companies (DISCOs). For those using private electricity sources, electric inspectors will be responsible for collection. The legislation amends the Punjab Finance Act 1964 and now awaits final approval from the Governor of Punjab. The new duty is aimed at expanding the tax base within the commercial and industrial sectors.