KARACHI: Sindh High Court (SHC) temporarily restricted Karachi Metropolitan Corporation (KMC) from collecting municipal taxes with electricity bills. Court remarked that tax collection will be restored when city administration satisfies it over matter. Directive came during hearing of a plea filed on September 23 by Jamat-e-Islami leader Hafiz Naeemur Rehman against KMC’s tax collection in K-Electric bills.

Under Sindh Local Government Act 2021, provincial government had in April directed power utility to collect municipal utility charges and taxes (MUTC). As per an agreement signed between KMC and K-Electric (KE), former aims to earn an estimated Rs 3 billion yearly by collecting MUCT, through KE’s power bills. During hearing, Karachi Administrator Murtaza Wahab informed court that KMC taxes range from Rs 50 to Rs 200 requesting court not to restrict tax collection now. He assured court of presenting all details at next hearing.

“Taxes as high as Rs 5,000 have been waived and reduced to Rs 200,” he said. At this, court told Wahab to make recoveries through third parties. “Make recoveries however you want but not through KE,” it remarked. Court also restricted KE not to cut off power connections of consumers who are unable to pay taxes. “Centre is giving a lot of money to province. Karachi is provided with funds like alms (bheek),” Justice Hassan Azhar Rizvi. He rebuked Wahab referring to dilapidation of roads and other infrastructural faults and increasing robberies in city. At this, Wahab said that KMC has responsibility of 209 roads.

“If you are doing all of work then what is Sindh government doing?” justice asked. He objected to why “double charges” are imposed on people when they are already paying property and motor vehicle taxes. “Applying municipal charges through KE is not appropriate,” court remarked while restricting KMC from collecting municipal taxes with electricity bills till next hearing. 

Published in The Daily National Courier, September, 27 2022

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