Advance Tax on Electricity Bills of Non-filers
Advance Tax on Electricity Bills of Non-filers via Section 235: A new sub-section (1A) is added under Section 235 wherein the legislature intends to broaden the tax base through collection of additional tax on electricity consumption from Non-filer Professionals. Now additional advance tax based on slab rate will be collected from professionals whose
➢ name is not appearing on ATL, and
➢ operating from residential premises having domestic electric connections.
This above advance tax will be in addition to already promulgated advance tax scheme under the ordinance.
The term Professional has been defined to include Accountants, Lawyers, Doctors, Dentists, Health Professionals, Engineers, Architects, IT Professionals, Tutors, Trainers and other persons engaged in provision of services.
The rate of tax based on the amount of electricity bill is reproduced below:
| Sr. # | Description | Rate of tax |
| 1 | Where the bill does not exceed 10,000 rupees | 5% |
| 2 | Where the bill exceeds 10,000 rupees but does not exceed 20,000 rupees | 10% |
| 3 | Where the bill exceeds 20,000 rupees but does not exceed 30,000 rupees | 15% |
| 4 | Where the bill exceeds 30,000 rupees but does not exceed 40,000 rupees | 20% |
| 5 | Where the bill exceeds 40,000 rupees but does not exceed 50,000 rupees | 25% |
| 6 | Where the bill exceeds 50,000 rupees but does not exceed 75,000 rupees | 30% |
| 7 | Where the bill exceeds 75,000 rupees | 35% |
We understand that the additional advance tax collected from domestic consumer shall remain adjustable from his / her tax liability.
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/
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