Punjab Govt Introduces New Electricity Duty for High-Power Users
Nov 4, 2025
The Government of Punjab has approved the Punjab Finance (Amendment) Bill 2025, introducing a new electricity duty targeting industrial and commercial consumers using more than 500 kVA of power.
According to the amendment, a duty of 4 paisa per unit will now apply to high-power users, while those consuming up to 500 kVA will remain exempt. Institutions running generators above 500 kVA will also fall under this new tax category.
All domestic consumers are completely exempt from this duty. For users connected to the national grid, the duty will be collected through distribution companies (DISCOs), while private power producers will be monitored by electric inspectors for duty collection.
The legislation, which amends the Punjab Finance Act 1964, is designed to broaden the provincial tax base within the industrial and commercial sectors. The bill now awaits final approval from the Governor of Punjab.
