The Punjab cabinet on Monday approved the Electricity Duty Rules 2026, introducing a revised taxation framework for private power generation, including generators and solar energy systems, while exempting domestic consumers.According to details, under the new rules, private generators and solar power systems above 500 kVA will be brought into the tax net. Industrial and commercial consumers will be charged electricity duty at 4 paisa per unit, according to official details.

The provincial government expects annual revenue of around Rs300 million from the new levy.  Officials said that 1,177 industrial and commercial sites would fall under the new regime. Domestic users have been fully exempted from the electricity duty. The rules grant expanded enforcement powers to the electric inspector, including authority to seal power generation facilities, inspect records of private plants, and enforce compliance through recovery under the Land Revenue Act. 

Provincial authorities said that private power producers will be required to register their systems, including solar installations, while industrial and commercial self-generation units must install separate energy meters. Monthly returns and log books will also be mandatory under the new framework. Non-compliance will attract a late payment surcharge of 10 to 15 per cent, while inaccurate reporting may result in penalties and possible suspension of electricity generation. The provincial government has repealed the 2012 rules, replacing them with the Electricity Duty Rules 2026.

Credit: Independent News Pakistan (INP)