The Punjab Assembly has approved the Punjab Finance (Amendment) Bill 2025, introducing a new electricity duty on industrial and commercial consumers using more than 500 kVA of power.
The bill was passed without being sent to a committee for review. Under the new amendment, a duty of 4 paisa per unit will apply to users exceeding the 500 kVA limit, while those consuming up to 500 kVA will remain exempt.
Institutions operating generators with a capacity above 500 kVA will also fall under the new tax category.
All domestic users are fully exempt from this duty. For industrial and commercial consumers connected to the national grid, the duty will be collected by distribution companies (DISCOs), while electric inspectors will handle collection from those using private power sources.
The legislation, which amends the Punjab Finance Act of 1964, now awaits the Governor’s approval. The move aims to broaden the province’s tax base within the commercial and industrial sectors.