The Punjab Assembly has passed the Punjab Finance (Amendment) Bill 2025, introducing a new electricity duty for industrial and commercial consumers. The law targets users consuming more than 500 kVA of power, while smaller consumers remain exempt.
Under the new legislation, a duty of 4 paisa per unit will be levied on high-power users. Institutions operating generators above the 500 kVA threshold will also be included in the tax net. Domestic consumers in Punjab will continue to be fully exempt from the electricity duty.
For industrial and commercial users connected to the national grid, the duty will be collected through distribution companies (DISCOs). Those relying on private electricity sources will be monitored by electric inspectors, who will ensure proper collection of the duty.
The bill amends the Punjab Finance Act 1964 and now awaits final approval from the Governor of Punjab. Officials say this step aims to expand the tax base in the commercial and industrial sectors, strengthening provincial revenue without burdening households.
The Punjab government emphasized that the new duty is designed to be fair, targeting high-power users while exempting small businesses and domestic consumers. Authorities expect this measure to improve revenue collection and encourage efficient electricity usage among large consumers.
Analysts note that this amendment aligns with broader efforts by the Punjab government to modernize taxation policies and ensure that large-scale industrial and commercial users contribute fairly to provincial development funds.
Once implemented, the new electricity duty is expected to generate significant revenue for Punjab, supporting infrastructure projects, energy efficiency programs, and other provincial initiatives.
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Overall, the amendment reflects the provincial government’s focus on fiscal responsibility, equitable taxation, and sustainable energy management in Punjab’s industrial and commercial sectors.
