ISLAMABAD: Federal Government has decided in principle to withdraw subsidy being provided for electricity.It has been proposed to raise general sales tax on electricity bills from present 15 percent to 16 percent and collect the same from the consumers.

Besides, National Electric Power Regulatory Authority (NEPRA) has been allowed to undertake fuel re-adjustment of distribution companies on monthly basis instead of every six months.

The step may lead to further rise in the monthly electricity bills.Well-placed sources told Geo News that Federal Government has proposed in the finance bill to increase the general sales tax on electricity bills from the present 15 percent to 16 percent with effect from July 1. It has also been proposed to withdraw subsidy being provided to consumers for GST payment.

This implies that consumers will now have to pay increased GST of 16 percent from their own pocket.In view of rising trend of fuel prices, it is also likely that the electricity rates may be reviewed on monthly basis. geo tv

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