How much municipal taxes will be collected through KE bills?

KARACHI: The City Council on Tuesday passed a resolution seeking collection of municipal utility charges and taxes (MUCT) for the Karachi Metropolitan Corporation (KMC) through K-Electric (KE) power bills.

In a statement, Mayor Karachi Murtaza Wahab announced that households consuming up to 100 units of electricity will be exempt from paying municipal tax.

Those consuming 100-200 units will be charged R 20, while those using 200-300 units will be charged Rs40. He added that the tax will generate Rs4 billion in revenue monthly.

Murtaza Wahab noted that the opposition had taken the matter to court, arguing that the mayor did not have the authority to impose the tax. However, the court has now recognised the mayor’s authority to levy the tax.

He expressed gratitude to the court for acknowledging the mayor’s powers and stated that the revenue generated from the tax will be used for the city’s development.

The council approved the resolution seeking the collection of Municipal Utility Tax through KE monthly bills, amid criticism from opposition benches.

The decision was met with fierce opposition from Jamaat-e-Islami (JI), who staged a protest and chanted slogans against the K-Electric (KE). The mayor adjourned the meeting due to the ruckus.

Last month, the Sindh High Court directed the Karachi Metropolitan Corporation (KMC) to complete the exercise of reviewing an agreement about collection of Municipal Utility Charges and Taxes (MUCT) through electricity bills and placing the same before the City Council within three months.

However, the SHC also asked the KMC to proceed with its actions in compliance with applicable law and ruled that any resolutions or notifications issued by the corporation must be considered provisional and subject to the final determination of a petition filed against various provisions of KMC and MUCT rules.