The taxes printed on a MEPCO bill
| Line | Rate | Charged on |
|---|---|---|
| GST (sales tax) | 18% | Energy charges plus duty |
| ED (electricity duty) | 1.5% | Variable energy charges |
| ITAX (income tax, section 235) | 7.5% for non-ATL homes, bill Rs 25,000+ | The gross bill |
| TV fee | 0 | Removed from bills from July 2025 |
The fuel price adjustment (FPA) carries its own duty and GST, printed separately in the FPA details.
A real example
On a MEPCO bill for a protected home using 97 units, energy charges came to Rs 1,173.38. Electricity duty was Rs 13.98 and GST Rs 214, so taxes were about 19% of the energy part. Income tax was zero because the bill was small. See the full line-by-line breakdown in how to read your MEPCO bill.
Filer vs non-filer: section 235 income tax
Under section 235 of the Income Tax Ordinance 2001, distribution companies collect advance income tax through electricity bills.
- Domestic connections: if the CNIC on the connection is not on the Active Taxpayers List (ATL), 7.5% is charged once the monthly bill reaches Rs 25,000. Below that, no income tax is added. Filers on the ATL are not charged this tax on domestic bills.
- Commercial and industrial connections: advance tax applies under separate rates whatever the filing status. Check the current rates with FBR.
Check your ATL status: send an SMS with ATL (space) your 13-digit CNIC to 9966.
Paying non-filer tax although you file returns?
The tax follows the CNIC registered on the connection. If the meter is in a landlord’s, previous owner’s or late parent’s name, the bill is taxed by that person’s status. To fix it, the connection must be put in the name of the filer through a change of name at MEPCO, or the correct CNIC registered against the connection.
Get your annual tax certificate
The PITC bill page includes a Certificate of Collection of Tax for the fiscal year, listing month by month the gross bill, income tax and GST collected under section 235. Open your bill with the reference number to see it on the official portal. Income tax collected this way is advance tax that can be claimed in your return, subject to the law’s conditions.
Ways to keep taxes low
- Become a filer and make sure your CNIC is on the connection.
- Pay before the due date so no late payment surcharge is added.
- Keep consumption within protected limits where you can. See tariff slabs.
Frequently Asked Questions
How much GST is charged on a MEPCO bill?
18% general sales tax on energy charges and duty. The fuel price adjustment carries its own GST, shown separately.
Why is income tax added to my electricity bill?
Under section 235, advance income tax is collected on domestic bills of Rs 25,000 or more when the connection holder is not on the Active Taxpayers List. The rate is 7.5%.
Is the PTV fee still on electricity bills?
No. The government removed the PTV fee from electricity bills from July 2025, so it now shows as zero.
Where can I get my MEPCO income tax certificate?
Open your bill on the PITC portal with your reference number. The Certificate of Collection of Tax for the fiscal year is available there.