Karachi Electric Supply Company (KESC) has clarified that it has no control over government taxes and levies charged on electricity. Referring to a news item appearing in Business Recorder of July 5, titled: "Account Of Taxes & Charges: KESC consumers required to pay around 35 percent excess amount," KESC said that as is obvious from their titles, the income tax, general sales tax, electricity duty and TV license fee were being charged to consumer based on specific applicable laws and government instructions and KESC only acted as a collecting agent.
In fact, in case of GST, KESC has to pay the government on charged basis irrespective of the actual collection from consumers, and as a result has to pay from its own pocket in respect of defaulting consumers. Bank charges at the rate of Rs 8 are collection charges for banks and being recovered based on Nepra approval. Meter rent is not being charged as a percentage as claimed in the news item, but in reality, KESC charges fixed amount of Rs 7.5, 15 and 20 depending upon the type of connection.-PR