Electricity Rate and Taxes in Pakistan: Guide for 2025

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Jun 17, 2025 Law and Taxes 10

Electricity is used every day in homes, shops, and offices. But electricity in Pakistan is not just about using units.  It is also about understanding electricity rates, taxes, and how these affect your electricity bill in Pakistan. This guide will explain everything in simple words for 2025, including income tax on electricity bills in Pakistan, commercial unit prices, LESCO income tax certificate. Also, solar taxes and the latest income tax slabs. So, stay connected with Raabty.  

Electricity Rate in Pakistan 2025

In 2025, the electricity rate in Pakistan for domestic users is usually between Rs. 15 to Rs. 35 per unit, depending on usage. More use means a higher rate per unit. The electricity rate in Pakistan depends on who is using the electricity:

  1. Domestic (home) users: Lower unit prices
  2. Commercial users: Higher unit prices
  3. Industrial users: Special industrial rates

Type of Consumer

Unit Rate (PKR per kWh)

Fixed Charges

Domestic (up to 100 units)

Rs. 7 to Rs. 10

Rs. 75 to Rs. 150

Domestic (above 300 units)

Rs. 22 to Rs. 35

Rs. 500 to Rs. 1,000

Commercial Users

Rs. 40 to Rs. 52

Rs. 2,000 to Rs. 5,000

Industrial Users

Rs. 38 to Rs. 48

Based on connected load


Different Cities Unit Rates 

FESCO Electricity Unit Prices:

Number of Units

Electricity Per Unit Rate (PKR)

1-100

22

101-200

27

201-300

30

301-400

33

401-500

35

501-600

36

601-700

37

Greater than 700

42

 

IESCO (Islamabad Electric Supply Company) Electricity Unit Price

Number of Units

Per Unit Price (PKR)

1-100

16

101-200

22

201-300

27

301-400

32

401-500

35

501-600

36

601-700

37

Greater than 700

42

 

LESCO (Lahore Electric Supply Company) Electricity Unit Price

Number of Units

Electricity Per Unit Rate (PKR)

1-100

10

101-200

13

201-300

24

301-400

27

401-500

37

501-600

38

601-700

41

Greater than 700

42

 

Income Tax on Electricity Bill in Pakistan (2025)

If your electricity bill in Pakistan is more than Rs. 25,000, an income tax on the electricity bill in Pakistan will be added.  Especially if you are a non-filer (someone who doesn’t submit tax returns). For non-filers, the withholding tax is much higher. This is done under Section 235 of the Income Tax Ordinance, and it is collected directly on your monthly bill. Here is a simple 2025 income tax slab table for salaried individuals

 

Annual Income (PKR)

Tax Rate

Up to Rs. 600,000

0%

Rs. 600,001 – 1,200,000

5%

Rs. 1,200,001 – 2,400,000

10%

Rs. 2,400,001 – 3,600,000

15%

Rs. 3,600,001 – 6,000,000

20%

Over Rs. 6,000,000

25% or more

 

LESCO Income Tax Certificate

If you live in Lahore and get electricity from LESCO (Lahore Electric Supply Company), you can easily get your LESCO income tax certificate online. This certificate shows how much tax you have  paid through your bills. And it will be  helpful when you file your annual tax return.

How to Download LESCO Income Tax Certificate?

  1. Go to LESCO’s official website.
  2. Click on Tax Certificate.
  3. Enter your reference number or customer ID.
  4. Select the month or year and download the certificate.

Solar Tax Pakistan: What You Should Know?

Many people are now using solar energy to reduce their bills. But there are new tax rules. The solar tax in Pakistan refers to income tax applied to net metering users.  people who sell extra solar power back to the grid.

If you are earning money from solar energy, it may be considered taxable income. However, basic solar usage (only for your own house) still gives big savings and fewer taxes compared to grid electricity. In short:

  1. Home solar systems like not selling power, No extra tax will be applied.
  2. Net metering users may be taxed on income earned from selling electricity
     

Electricity Rate and Taxes in Pakistan: Guide for 2025

Commercial Unit Price of Electricity in Pakistan

Businesses like shops, offices, and factories use commercial electricity, which is more expensive than domestic usage. These users face higher taxes and unit rates.

  1. Unit rates range from Rs. 40 to Rs. 52 per unit
  2. General Sales Tax of 15%
  3. Income tax for commercial users with bills over Rs. 30,000 is Rs. 1,500 or more
  4. Advance income tax for non-filers is 12%
  5. Unregistered businesses pay 3% extra tax

In the 2025 budget, the government increased monitoring of electricity use by businesses to catch tax avoid and bring more people into the tax system.

Some Tips to Reduce Electricity Bill

If you want to lower your bill or avoid high taxes, here are a few useful tips:

  1. Try to keep your usage below 300 units to avoid higher income tax.
  2. Use energy-saving devices like LED bulbs, inverter ACs, and energy-efficient fans.
  3. Become a tax filer to avoid paying extra withholding tax on large bills.
  4. Check your taxes using the FBR tax calculator online.
  5. If possible, invest in a solar system which is currently tax-free.

Conclusion

In 2025, understanding your electricity rate and taxes in Pakistan is very important. Whether you are a home user or a business owner, knowing the electricity rate in Pakistan, the income tax on electricity bills is important. Also, how to get your LESCO income tax certificate can help you save money and avoid some problems. If you are using solar energy, keep yourself updated about the latest solar tax in Pakistan. And if your bill seems too high, check your tax slab to see if you can adjust or reduce it during your yearly tax filing.

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