Pakistan Today

Fleecing the consumers

It proved a total shock to me when I received the electricity bill for the month of October 2010 from Lahore Electricity Supply Company (LESCO). The total units consumed were 415 at the rates Rs 12.723 per unit, thus the total cost of electricity is Rs 5280.27. Out of the total amount, fuel price adjustment was Rs 0.26 per unit with a total of Rs 319.14, Withholding Tax was Rs 650, which is about 12.30 percent and GST was Rs 911 which was about 17.25 percent, electricity duty Rs 79.20 which was about 1.49 percent. In addition, Rs 41.50 as the Neelum Jehlum Hydro Project surcharge were charged which was about 0.78 percent of the total bill. The total amount of taxes is Rs 2000.84 which is about 37.89 percent of electricity cost.

I would like to know why the LESCO is collecting more than 10 percent tax as Withholding Tax. Similarly, why more than 17 percent GST. Why it has not mentioned clear percentage of the various taxes in the bill. Only the excise duty (1.5 percent) is written on the bill. Under which law NJS is being collected by LESCO. Are other electric supply companies, such as KESCO, ISECO also collecting NJS surcharge? How much money has been collected by these companies from consumers during the last three years? When the project will be operational? Dont the consumer have any right to know what they are paying and for what they are paying? Why the government is not providing relief to the consumers by reducing its taxes on the electricity?

S T HUSSAIN

Lahore

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