Electricity tariff increase of 50 paisa tied to DISCO tax
Industry sources say the government has assured distribution companies that income-tax costs, including a 1.25% minimum turnover tax, will be recovered through consumer rates even when firms report losses.
The government has reportedly assured DISCOs that income-tax liabilities will be treated as pass-through costs in consumer tariffs, whether firms profit or lose.
LESCO has sought about Rs20 billion and FESCO about Rs15 billion under this head; industry links the load to a 1.25% minimum turnover tax.
At around Rs35 a unit, that minimum tax alone is estimated at roughly 50 paisa per unit, with a higher burden if overall income tax exceeds the minimum.
HESCO faces an extra tax demand of about Rs3 billion after the FBR directed it to include government subsidies in turnover.
Industry wants exemption, self-funded tax payment, lower rates akin to other sectors, and clarity after DISCO privatisation.