PM Shehbaz announces waiving fuel charge adjustment for 17mn power consumers

Prime Minister Shehbaz Sharif announced on Tuesday that 17 million power consumers will be exempted from paying the fuel charge adjustment (FCA) through electricity bills, Aaj News reported.

He made the announcement while talking to journalists in Doha during his maiden visit to Qatar.

He said the decision was made after consulting the International Monetary Fund (IMF) and the government's coalition leaders.

Further details of the development will be shared by Power Minister Khurram Dastagir tomorrow (Wednesday).

The premier said the decision will benefit 17 million consumers, adding that the government was also deliberating relief for the remaining 13 million consumers.

“The small traders faced difficulties due to fixed tax. Therefore, the government waived it,” the premier said at the outset of his talk, adding that the exemption will also apply to tubewell users.

“I hope from these measures there will be contentment among the people and they would realise that the government is trying to improve their situation.”

Later, commenting on the development, Interior Minister Rana Sanaullah said that the major relief announced by the premier will alleviate the miseries of more than 17 million inflation-stricken consumers.

“The fixed tax and fuel adjustment charges have been waived as the government is taking all the necessary measures to curb inflation,” he said in a Twitter post.

Earlier on Saturday, PM Shehbaz ordered the suspension of fixed sales tax collection through the electricity bills and directed the formulation of a new mechanism in this regard.

The premier also directed an inquiry over the levy of increased sales tax ratio on shopkeepers and retailers in the electricity bills.

The prime minister issued these directives while chairing a meeting to review electricity rates and fixed sales tax collection through electricity bills.

During the meeting, PM Shahbaz asked for the inclusion of representatives of traders in the consultation process, prior to taking any decision with regard to the collection of taxes from shopkeepers through the utility bills.

While resolving that the government would take all steps for the economic protection of the poor segments of society, the premier also directed the relevant authorities and ministries concerned to immediately devise an effective mechanism for slashing the power rates for the poor.