Punjab Imposes New Power Duty on Major Consumers
The Punjab Assembly has approved the Punjab Finance (Amendment) Bill 2025, introducing a new electricity duty for large industrial and commercial consumers.
Passed without referral to any standing committee, the bill signifies a major policy shift in Punjab’s taxation structure for high-capacity electricity users.
Under the new law, a four-paisa-per-unit electricity duty will apply to all industrial and commercial consumers using more than five hundred kVA of power.
Consumers utilizing up to five hundred kVA will remain exempt, while institutions operating generators beyond that limit will also be included in the duty.
Officials said the measure seeks to broaden Punjab’s tax base, ensuring large-scale energy users contribute their due share to the province’s revenue stream.
Domestic consumers have been completely exempted from the new duty, ensuring that additional costs are borne only by commercial and industrial entities.
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For consumers connected to the national grid, the duty will be collected by distribution companies (DISCOs) on behalf of the Punjab government.
Those relying on private power sources or generators will have their dues collected by electric inspectors appointed under the relevant provincial regulations.
The amendment modifies the Punjab Finance Act of 1964 and now awaits final approval from the Governor of Punjab before implementation begins.
Officials said the new duty will help boost provincial revenue while encouraging greater energy efficiency among large industrial and commercial power users.
The bill also supports Punjab’s ongoing fiscal reforms aimed at reducing reliance on federal funds by enhancing the province’s own resource generation capacity.
