GST, Income Tax and Other Taxes on MEPCO Electricity Bill Explained
Why Are There So Many Taxes on My MEPCO Bill?
Your MEPCO electricity bill includes multiple government taxes collected by MEPCO on behalf of federal and provincial governments. Understanding each tax helps you see exactly where your money goes.
1. GST – General Sales Tax (18%)
- Rate: 18% on total electricity charges
- Collected on behalf of Federal Board of Revenue (FBR)
- Applied to energy charges, fixed charges, FPA, and FC Surcharge
- Shows as "GST" on your bill
2. Electricity Duty (1.5%)
- Rate: 1.5% of energy charges
- Provincial tax levied by the Punjab government
- Shows as "ELECTRICITY DUTY" or "ED" on your bill
3. Income Tax (Withholding)
- Non-Filers: 7.5% on bills above Rs. 25,000
- Active Tax Filers: Exempt from this withholding
- Shows as "INCOME TAX" on your bill
- Submit proof of filer status to MEPCO to avoid deduction
4. GST on FPA
The FPA amount is also subject to 18% GST, shown separately as "GST ON FPA" on your bill.
5. TV Fee – Pakistan Television Corporation
A fixed Rs. 35 per month TV license fee collected on behalf of PTV. Applies to all domestic and commercial consumers.
What Percentage of My Bill is Taxes?
For a typical domestic non-protected consumer, taxes and levies can account for 25–35% of the total bill — including GST, Electricity Duty, TV Fee, and potentially Income Tax.
Frequently Asked Questions (FAQ)
Q: How is 18% GST calculated on my MEPCO bill?
A: GST is 18% of the total of energy charges, fixed charges, FPA, and FC surcharge combined.
Q: I am a tax filer. How do I avoid income tax deduction?
A: Submit your FBR Active Taxpayer List printout to your MEPCO Sub-Division office to update your account for tax exemption.
Q: Why is there GST on FPA?
A: Under Pakistani tax law, GST applies to all electricity supply charges including surcharges and adjustments like FPA.