Karachi, The Pasban Democratic Party (PDP) has raised concerns over K-Electric’s (KE) high electricity tariffs and its impact on the industrial sector of Karachi. Abubakar Usman, the party’s director of political and economic issues, accused KE of engaging in a form of ‘white collar robbery’ by levying four types of taxes on the industry, contributing to economic hardships and potentially harming the city’s industrial output.

According to PASBAN Democratic Party, Abubakar Usman detailed the specific grievances against KE, noting that the industrial electricity bills for November charged an exorbitant rate of Rs70.66 per unit. He criticized KE’s taxation methods, including the recovery of sales tax under Section 3 Sub Section 1, and dual sales tax under Section 3 (1a), which he claimed were illegal and against taxation norms. Usman also highlighted the issue of charging triple extra sales tax under section 3 (5), SRO 1222/2021, without proper adjustment for consumer input, questioning the practices of both KE and the Federal Board of Revenue (FBR).

Usman further argued against the recovery of advance income tax from consumers who have already submitted their verified National Tax Numbers (NTN) and CNIC numbers. He stated that this practice places an undue burden on consumers, especially when 100% recovery is made from tax filers, and that withholding tax deducted at the source is not being refunded.

The PDP leader expressed concern that KE’s high tariff and taxation practices are moving the city’s industrialists toward economic collapse. He pointed out that the utility company is collecting multiple taxes including income tax, further tax, extra tax, and sales tax, which collectively account for more than Rs22.30 per unit or 32% of the bill amount.

Usman warned that the high tariff rates would severely affect exports, resulting in losses to the current account, and doom the local industry. He emphasized the broader implications of these practices, including increased unemployment, poverty, and escalating food inflation in Pakistan, already at a high of 34%. The PDP demanded that the industrial electricity tariff be made sustainable and free from multiple taxations to protect the national economy.