Miftah Ismail pledges legal action against K-electric, demands tax rollback on power bills

Former finance czar highlighted 350% increase in power bills since 2015, questioned whether salaries saw similar rise


News Desk July 28, 2024
Former finance minister Miftah Ismail talks to a journalist during an interview. PHOTO: REUTERS/FILE

Ex-finance czar and leader of the newly-formed Awam Pakistan Party, Miftah Ismail has announced his plan to file a petition against K-Electric, demanding the withdrawal of taxes imposed on electricity. Speaking to demonstrators from his party on Sunday, Ismail emphasised his commitment to fighting for the public's rights.

Addressing the protesters, Ismail criticised the Pakistan People's Party (PPP) for its "unfulfilled promise" of 300 free units of electricity. "If free electricity cannot be provided to the public, then no one should receive it," he stated. He highlighted a 350% increase in electricity bills since 2015 and questioned whether salaries have risen similarly.

The former PML-N member condemned the imposition of taxes, noting that household consumers face a 24% tax on their bills, while commercial users are taxed at 37%. He accused the government of increasing its operational expenses by 24%, including higher Senate expenditures.

Ismail argued that suspending taxes for household consumers for four months would result in only a Rs50 billion loss, while reducing taxes would decrease electricity bills by 24%. He also criticised K-Electric for overbilling and power outages in impoverished areas, despite continued bill hikes.

He reiterated his stance that if free electricity cannot be provided, it should not be available to anyone. He concluded by vowing to file a petition against K-Electric and fight this battle on behalf of the public.

Recently, the former finance minister suggested that the government eliminate sales tax and advance income tax on electricity bills for domestic consumers from July to September. This measure, he claimed, would reduce household electricity bills by 24%.

He emphasised the need for the government to cut its own expenses, arguing that high electricity bills contribute to political instability in Pakistan and distance the ruling party, PML-N, from the public. "Those in power who ask the people to make sacrifices must also be willing to do the same," he stated.

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