KMC to earn Rs4bn annually under MUCT, estimates Wahab

The Karachi Metropolitan Corporation (KMC) and K-Electric have reached a fundamental agreement for the collection of the Municipal Utility Charges & Taxes (MUCT), a press statement issued on Sunday quoted Karachi Mayor Barrister Murtaza Wahab as saying.

Wahab said that a resolution related to the collection of the said tax in accordance with the court’s decision has also been approved by the KMC’s City Council. According to the details, an agreement has been reached to collect the MUCT through KE.

The mayor said that a relevant committee had been formed, and it had held regular meetings before a resolution was sent to the City Council based on the committee’s recommendations.

He said that according to the court’s decision, it is necessary to provide maximum relief to low-income individuals. The committee suggested that consumers using up to 100 electricity units will be exempted from this tax, and besides the municipal service charges, KE will not make any direct deductions for any other payments, he added.

The City Council has formally approved the resolution regarding the MUCT in the light of the orders of the court as well as the recommendations of the relevant committee.

In the meeting with KE, it was agreed to exempt poor or low-income domestic consumers using up to 100 units, while charging Rs20 for using 101 to 200 units, Rs40 for 201 to 300 units, Rs100 for 301 to 400 units, Rs125 for 401 to 500 units, Rs150 for 501 to 600 units, Rs175 for 601 to 700 units, and Rs300 for those consuming over 700 units.

For commercial electricity consumers, a charge of Rs400 will be applied across all categories. Similarly, for industrial consumers, Rs400 will be applicable across all categories.

Wahab said that the implementation of this would enable the KMC to earn Rs4 billion annually under the MUCT. “This income will be spent transparently on the welfare and development of the city, and this system will be made more transparent and organised.”

He said that the tax being levied now is much less than what was collected during the tenure of former city mayor Mustafa Kamal of the Muttahida Qaumi Movement.

He made the assurance that the residents’ trust would be spent transparently for the development of the city, and he would personally oversee all the income and expenses under this head.

He also said that the undertaking given to the honourable court as the mayor of Karachi has been fully complied with. Those opposing this tax are not friends of the city, he added. He reiterated that every penny collected from this tax would be accounted for.