The Karachi Metropolitan Corporation (KMC) began adding a municipal tax to K-Electric (KE) bills in July, as reported by ARY News. The Municipal Utility Charges and Taxes (MUCT) are applied based on the amount of electricity consumed by KE customers. For domestic users, the tax ranges from Rs 20 for those using 101 to 200 units, up to Rs 300 for those exceeding 700 units. Commercial and industrial consumers face a flat rate of Rs 400.
Karachi’s Mayor, Barrister Murtaza Wahab, stated that the revenue from this tax will fund development projects in the city. According to an agreement between KMC and KE, the power company will keep 7.5% of the collected tax, while 50% of the revenue will be allocated to settling KMC’s dues.
It’s important to note that KMC currently owes around Rs 1.5 billion to KE. However, the move has sparked legal challenges. Jamaat-e-Islami (JI) has filed a contempt of court petition against Mayor Wahab, alleging that he violated the Sindh High Court’s (SHC) directives by imposing this tax on electricity bills. The petition claims that the mayor had previously assured the court not to impose the tax on consumers using less than 300 units per month and had promised to consult with opposition members before moving forward with the plan.
This development has stirred controversy, highlighting ongoing tensions between KMC and city residents, as well as between political factions within Karachi’s administration. The outcome of the legal challenges may significantly impact how municipal taxes are handled in the future.
 began adding a municipal tax to K-Electric (KE) bills in July, as reported by ARY News. The Municipal Utility Charges and Taxes (MUCT) are applied based on the amount of electricity consumed by KE customers. For domestic users, the tax ranges from Rs 20 for those using 101 to 200 units, up to Rs 300 for those exceeding 700 units. Commercial and industrial consumers face a flat rate of Rs 400.){kind=link}