Ex minister urges govt to cut taxes on electricity bills for immediate relief

Author: inp

Miftah Ismail, a central leader of the Awam Pakistan Party and former Finance Minister, has called on the government to provide immediate relief to domestic consumers by eliminating taxes from electricity bills.

Speaking to a local TV channel, Ismail emphasized the need for the government to negotiate with Independent Power Producers (IPPs) to address deficits and recover dues from defaulters.

Ismail suggested revisiting discussions with IPPs, similar to those held during the PTI era, to reduce the tax burden on consumers. He proposed removing four types of taxes from electricity bills, which would result in a deficit of approximately Rs 400 billion. However, he argued that this deficit could be covered from the Rs 1,100 billion PSDP fund, thereby addressing IMF concerns about fiscal deficits.

The former Finance Minister also highlighted potential for relief in Sindh, where wind-generated electricity could be utilized if cable infrastructure were improved. He further criticized the reliance on furnace oil for power generation, advocating instead for reduced electricity tariffs to boost consumption and reduce capacity charges.

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