KARACHI: In a move that adds to the financial burden of Karachi’s residents, the Karachi Metropolitan Corporation (KMC) has formally notified the collection of the controversial Municipal Utility Charges and Tax (MUCT) through K-Electric (KE) bills. This new charge will cost residents up to Rs400 extra in their electricity bills for the current month.
Officials from both KMC and KE have confirmed the implementation of MUCT, which is expected to generate over four billion rupees annually for the city’s municipal administration. A KMC official stated that KE consumers will see the MUCT reflected in their next bill, starting from August 1, 2024, excluding cantonment areas.
The collected MUCT funds will support Karachi’s infrastructure projects and enhance essential services. The KMC assures transparency in the utilization of these funds, with monthly updates available on its website. The additional revenue is expected to provide significant financial support to various tiers of the city’s municipal administration, including union councils.
KE officials confirmed the inclusion of MUCT in the upcoming bills. The KMC and KE had signed an agreement in June 2022, which became effective in July after the City Council approved the levy. According to the agreement, KE will collect MUCT from domestic and non-domestic consumers within KMC’s jurisdiction, with charges varying by consumption category.
Consumers using up to 100 units will be exempt from the new tax. Those consuming between 101 and 200 units will pay Rs20, between 201 and 300 units will pay Rs40, and between 301 and 400 units will pay Rs100. Higher consumption brackets will see increased charges, with those using more than 700 units paying Rs300. Commercial and industrial consumers will pay Rs400 each.
Despite the implementation, challenges remain for Mayor Barrister Murtaza Wahab, who recently received a notice from the Sindh High Court (SHC) regarding a contempt of court application filed by Jamaat-i-Islami leaders. The SHC is scheduled to address this issue on August 7.
Story by Imran Ayub
