Punjab Govt Imposes New Electricity Duty on High-Power Users

The Punjab Assembly has approved the Punjab Finance (Amendment) Bill 2025, introducing a new electricity duty targeting large industrial and commercial consumers. Under the new law, users consuming more than 500 kVA of power will now pay an additional 4 paisa per unit, while smaller users and all domestic consumers remain exempt.

The move, passed without committee referral, is part of the government’s efforts to expand the provincial tax base. According to the amendment, institutions running private generators exceeding 500 kVA will also be taxed. For users connected to the national grid, the duty will be collected through DISCOs, while electric inspectors will handle private power setups.

A senior official stated that

“the new duty ensures fair contribution from high-power consumers while protecting households from any additional financial burden.”

The bill amends the Punjab Finance Act 1964 and now awaits final approval from the Governor of Punjab before enforcement. The initiative is expected to generate additional revenue and promote more efficient energy consumption across industries.