KMC begins collecting municipal tax through KE bills

KARACHI: The Karachi Metropolitan Corporation (KMC) began collecting a municipal tax through K-Electric (KE) bills starting in July.

According to the details, the Municipal Utility Charges and Taxes (MUCT) rates are based on the electricity consumption of KE users.

Domestic consumers using 101 to 200 units will be charged Rs 20; those using 201 to 300 units will be charged Rs 40; Rs 100 for 301 to 400 units; Rs 125 for 401 to 500 units; Rs 150 for 501 to 600 units; Rs 175 for 601 to 700 units; and Rs 300 for consumption above 700 units. Commercial and industrial consumers will be charged a flat rate of Rs 400.

Mayor Karachi Barrister Murtaza Wahab stated that the revenue generated from this municipal tax would be used to fund development projects in the city. As per the agreement between KMC and KE, the power utility will retain 7.5 percent of the collected amount, while 50 percent will go towards settling KMC’s dues.

It’s important to note that KMC owes KE around Rs 1.5 billion in arrears.

Earlier, Jamaat-e-Islami (JI) filed a contempt of court petition against Mayor Karachi Barrister Murtaza Wahab for allegedly violating the Sindh High Court’s (SHC) directives by imposing the municipal tax through electricity bills. Saifuddin, the leader of the opposition in the City Council from JI, claimed that the Mayor disregarded court orders and the legal process.

He further mentioned that Barrister Murtaza Wahab had assured the SHC that the Municipal Utility Charges and Taxes (MUCT) would not be imposed on consumers using less than 300 units per month.

The Mayor had also submitted an affidavit, promising to form a committee for consultation with the opposition before seeking approval from the city council, the petitioner added.