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Electricity bills packed with 8 hidden taxes other than surcharges

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Electricity bills in the country come with more than just surcharges, as revealed by documents from the Power Division. Apart from the additional fees, consumers, spanning domestic, commercial, industrial, agricultural, and bulk categories, are subject to eight distinct types of taxes.

According to the Power Division’s documentation, a 18% general sales tax is levied on all consumers. Meanwhile, commercial and industrial consumers face a 10% income tax on bills ranging from Rs 19,000 to Rs 20,000.

For non-filer household customers with bills exceeding Rs 25,000, an advance income tax of 7.5% is imposed. Additionally, inactive commercial and industrial customers are subject to an extra sales tax ranging from 5% to 7%. Commercial customers, with bills surpassing Rs 20,000, are hit with a 7.5% retailer sales tax.

It’s important to note that these eight types of taxes are in addition to other charges like fuel price adjustments, quarterly adjustments, and various surcharges.

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