Withholding Tax on Electricity Bills: As per Finance Act 2021-22, Govt has imposed a Withholding tax for Nonfilers on Their electricity Bills.
If the Electricity bills of Non-Filers exceed Rs.25000 then Nonfilers will have to pay an extra 7.5% of WHT on their bills.
Lahore Electric Supply Company(LESCO) has given this awareness message to the general public on their website as well stating that from 1st July 2021, for Non-Filers WHT of 7.5% to be deducted from Non-Filers if their Electricity bill in any month exceeds Rs.25000.
Earlier the threshold for deducting WHT on electricity bills for Non-Filers was Rs.75000 but in Finance Bill 2021-22 this limit has been reduced to Rs.25000 only.
The Filers whose name appears on the active taxpayers’ list are exempted from this Withholding tax on their electricity bills even if their monthly electricity bills exceed Rs.25000.
To register for not paying WHT on electricity bills even if they exceed Rs.25000, the filers will have to register themselves for being exempted from this Withholding tax.
Filers are required to send their SMS to 8118 t get registered by typing a message as bellow
REG(Space)Reference Number(Space)Consumer CNIC Number
REG 19455845878525 3240283565252
Filers will receive a confirmation message that they are exempted from Electricity bills Withholding tax and hence their bills will not be charged with this WHT.
if filers don’t follow this then Electricity Bills of filers will also be charged with this WHT if their bill exceeds Rs.25000.
Govt has no doubt imposed this WHT to enhance the tax net.
on Banking transactions, for Non-filers, such tax had been imposed for many years to increase tax net but non-filers left doing banking transactions and they mostly start doing financial transactions in cash.
When it was observed that WHT on banking transactions has nothing or less impact on increasing tax net then in finance bill 2021-22 WHT on Banking transactions was removed.
Now let’s see will this electricity bill WHT helps Govt to increase the tax net or not.
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