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FPCCI Concerned Over Power Hike, Calls for Tax Reduction

“FPCCI” President: Electricity costs rise for consumers, in Pakistan.

In addition to cutting the ratio and number of taxes on electricity bills, FPCCI President Irfan Iqbal Sheikh urged that capacity charges be renegotiated and that sales tax be repealed.

Speaking at a news conference here at the FPCCI Regional Office, he stated that the most recent projection from NEPRA for power purchase prices for the fiscal year 2023–2024 reveals a significant financial burden, with consumers bearing 68 percent of expenditures for fixed capacity payments, mostly benefiting coal plants.

Irfan Iqbal Sheikh said that with no obvious answer or plan in place, high fuel costs, especially imports of petroleum, might potentially cause excessive volatility and put a pressure on foreign exchange reserves. The end consumer tariff was increased as a result, and it will take effect on July 1st, 2023.

The latest increase in electricity costs was rejected by the FPCCI because it was crippling for both residential and commercial consumers, and because inflation was already having a detrimental impact on enterprises and making them unprofitable.

According to the FPCCI President, residential customers are currently having trouble paying their electricity bills across the nation. Additionally, residential and commercial customers typically pay an additional 15 to 20 percent in the form of uniform quarterly adjustments, fuel price adjustments, and additional surcharges.

According to him, residential customers also pay an additional 20 to 25 percent in the form of electricity duty, sales tax, and income tax, as well as Rs35.57 for off-peak load and Rs41.89 for peak load. It’s crucial to remember that these fees don’t include taxes, gasoline cost adjustments, consistent quarterly adjustments, or extra surcharges.

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