Karachi : Chairman CAP, Kaukab Iqbal, stated that instead of reducing its own expenditures, the government has imposed heavy General Sales Tax (GST) and Withholding Tax (WHT) on utilities, consumer goods, and profit on savings. The current 18% GST on electricity, gas, and consumer items, along with the increase in WHT on profit on savings from 15% to 20%, is highly unjustified and unfair to the common man.
Chairman CAP, Kaukab Iqbal
He further highlighted that the 25% tax on prepaid mobile phone recharge is extremely high compared to other countries in the region. At a time when inflation has already severely affected household budgets, such measures are adding further financial stress on citizens.
Moreover, the imposition of fixed charges in electricity and gas bills—over and above actual consumption and existing taxes—has aggravated public hardship. These additional charges lack transparency and reasonable justification.
Kaukab Iqbal emphasized that consumers are already struggling due to rising prices of essential commodities, fuel, and utilities. Extracting maximum revenue without providing proportional relief reflects administrative insensitivity toward public welfare.
CAP urges:
•Immediate review and rationalization of GST and WHT rates.
•Withdrawal or reduction of excessive taxes on mobile recharge.
•Reconsideration of unjustified fixed charges in utility bills.
•Parliamentary oversight to ensure pro-consumer fiscal decisions.
The Association also calls upon federal and provincial ombudsmen to take notice of these matters and protect the fundamental rights of consumers.
Consumers Association of Pakistan stands firmly with the people and demands fair, transparent, and balanced taxation policies that prioritize public relief over revenue maximization.
