Pakistan's KP province opposes move to halt electricity duty collection via bills
Chief minister warns discontinuing the ED collection mechanism could trigger fiscal instability and a potential conflict between federal and provincial governments
Shahzad Raza
Correspondent
Shahzad; a journalist with 12+ years of experience, working in Multi Media. Worked in Field, covered Big Legal Constitutional and Political Events in Pakistan since 2012. Graduate of Islamic University Islamabad.
Photo by Pok Rie via Pexels
The government of Pakistan's Khyber Pakhtunkhwa province has strongly opposed the federal Power Division’s unilateral decision to halt the collection of electricity duty (ED) through consumer bills, calling it unconstitutional and a direct violation of the Constitution and existing laws.
In a letter to Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Provincial Chief Minister Ali Amin Khan Gandapur warned that discontinuing the ED collection mechanism without prior notice or provincial consultation could trigger fiscal instability and a potential conflict between the federal and provincial governments.
In response to a letter dated June 30 from Leghari, the chief minister cited multiple constitutional and legal provisions, including Article 157(2) of the Constitution, the KP Finance Act 1964, and the Electricity Duty Rules of 1964, asserting that the provincial government is legally empowered to impose and collect electricity duty.
The ED is currently recovered through monthly consumer bills in the range of 1 to 3% by distribution companies operating in KP — Peshawar Electric Supply Company (PESCO), Hazara Electric Supply Company (HAZECO), and Tribal Electric Supply Company (TESCO).
“Such a unilateral administrative decision announced discontinuation of collection of ‘Electricity Duty’ violates the Constitution of Pakistan, 1973 and laws of Khyber Pakhtunkhwa and is therefore a nullity as well as void ab initio,” Gandapur wrote, adding that there is no legal alternative method for collecting ED outside the existing billing system.
The letter also highlighted that the Council of Common Interests (CCI) was not consulted on the matter, as constitutionally required, and reaffirmed the province’s willingness to engage in constructive dialogue to find mutually agreeable solutions if the constitutional framework is respected.
The KP government has asked the Power Division to immediately reconsider its decision to avoid legal challenges and disruption of cooperative federalism.
Comments
See what people are discussing