SHC reserves verdict on municipal tax collection in electricity bills

KARACHI: The Sindh High Court (SHC) has reserved its verdict on the petition concerning the collection of Municipal Utility Charges and Taxes (MUCT) through K-Electric bills, ARY News reported on Thursday.

After hearing the argument from both sides, a two-member bench, headed by Justice Salahuddin Panwar, ruled that the petitions were resolved on assurance of review of the tax collection agreement.

During the session, Mayor Karachi Murtaza Wahab and various legal representatives presented their cases.

The court said that according to Mayor Karachi Murtaza Wahab, the municipal tax agreement will be reviewed again, assuring that K-Electric will not deduct the municipal tax directly.

According to the court, Mayor Karachi Murtaza Wahab has assured that the municipal tax agreement will be revisited, confirming that K-Electric will not directly deduct the municipal tax from consumers.

Instead, a special committee consisting of local council members will be formed to handle the tax collection process.

Additionally, the Mayor stated that citizens who pay less than Rs 10,000 to K-Electric will not be subjected to the municipal tax.

Acknowledging the already burdened citizens of Karachi due to inflation, the court directed the relevant authorities to provide direct relief to consumers using electricity below 300 units monthly.

The court has granted three months to review the agreement and complete the necessary processes.