K-Electric consumers to pay KMC tax on bills

KARACHI: The Karachi Metropolitan Corporation (KMC) started collecting a municipal tax in K-Electric (KE) bills from July, ARY News reported.

According to the details, the Municipal Utility Charges and Taxes (MUCT) rates vary according to the consumption of the KE consumers.

The domestic consumers who are using 101 to 200 units will be charged Rs 20; Rs 40 would be charged for 201 to 300 units; 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 above 700 units.

The commercial and industrial consumers will be charged a flat rate of Rs 400.Mayor Karachi Barrister Murtaza Wahab said that that the revenue generated from the municipal tax will be utilised to fund development projects in the city.

As per the agreement between the KMV and KE, the power utility will retain 7.5 percent of the collected amount, while 50 percent will be used to settle its dues to the KMC.

It is pertinent to mention here that the KMC owes around Rs 1.5 to KE in arrears.

Read More: Municipal tax collection: Contempt plea filed against Mayor Karachi

Earlier, the Jamaat-e-Islami (JI) filed a contempt of court petition against Mayor Karachi Barrister Murtaza Wahab for ‘violating’ the Sindh High Court’s (SHC) directives and imposing municipality tax through electricity bills.

In a petition, leader of opposition in the City Council belonging to JI, Saifuddin maintained that the Mayor violated court orders and disregarded the legal process.

He maintained that Barrister Murtaza Wahab assured the SHC not to impose Municipal Utility Charges and Taxes (MUCT) on consumers using less than 300 units per month.

“Mayor Karachi had submitted an affidavit, assuring the SHC to establish a committee for consultation with the opposition before approval from the city council,” the petitioner added.