In a move poised to affect all Karachi residents, the Karachi Metropolitan Corporation (KMC) has entered into an agreement with K-Electric to collect Municipal Utility Charges and Taxes (MUCT) through the utility company’s billing system. This agreement aims to simplify the tax collection process and boost municipal revenue significantly.
Karachi Mayor Barrister Murtaza Wahab confirmed that the foundational agreement with K-Electric is in line with a previously approved City Council resolution, ensuring compliance with judicial rulings regarding tax collection. He highlighted that this measure is essential for the city’s development and criticized those opposing it as not having the city’s best interests at heart. The new tax structure provides relief for low-income households and scales charges according to electricity consumption.
Under the updated policy, residential electricity consumers will face the following charges based on their monthly usage:
- Up to 100 units: Exempt
- 101 to 200 units: Rs. 20
- 201 to 300 units: Rs. 40
- 301 to 400 units: Rs. 100
- 401 to 500 units: Rs. 125
- 501 to 600 units: Rs. 150
- 601 to 700 units: Rs. 175
- Over 700 units: Rs. 300
Commercial users will be uniformly charged Rs. 400, as will industrial consumers.
Mayor Wahab emphasized that this initiative is expected to generate Rs. 4 billion annually for KMC. The funds will be allocated transparently for the welfare and development of Karachi, with a focus on enhancing transparency and organization within the system.
“This new tax rate is significantly lower than during Mustafa Kamal’s era,” said Mayor Wahab. “I guarantee that the collected funds will be used transparently for the city’s development.”
He stressed that opposing the tax is counterproductive to the city’s interests, insisting that the measure is necessary for Karachi’s improvement. Wahab pledged that the administration would fulfill the expectations and hopes of Karachi’s residents.
This new initiative marks a significant step towards enhancing Karachi’s municipal services and infrastructure, ensuring that the city’s growth and development are sustained through efficient and transparent revenue collection.
