KMC to collect two taxes through electricity bills

KARACHI: Sindh Chief Minister Syed Murad Ali Shah, while presiding over a joint meeting of Karachi Metropolitan Corporation (KMC) and K-Electric on Wednesday, decided to evolve a mechanism to collect two of the Karachi Metropolitan Corporation (KMC)’s taxes through electricity bills being sent to Karachi’s residents so that their recovery could be ensured.

The meeting was attended by Energy Minister Imtiaz Shaikh, KMC Administrator Murtaza Wahab, Principal Secretary to CM Sajid Jamal Abro, Sindh Energy Secretary Abu Bakar, CEO KE Moonis Abdullah Alvi, Director KE Haris Jamil and other relevant officials.

KMC’s Administrator Murtaza Wahab briefing the CM said that the KMC has to collect 13 different taxes from the people of the city living within the KMC limits. “Out of 13 taxes, the KE may collect only two taxes Fire Tax and Conservancy tax through its bills,” he said and disclosed that the KMC hardly collected Rs220 million annually on the account of both of these taxes.

The KMC administrator proposed that the K-Electric may collect Rs100 to Rs200 as Fire Tax and Conservancy Tax from its 2.5 million consumers through its electricity bills every month. He added that this would help the KMC to generate around Rs9 billion annually.

The CM said that he had been working to strengthen the local bodies of Karachi to make them financially stable so that these agencies could serve the citizens from their own resources. “The KMC used to be a well-off organisation but from last one decade it has been crippled financially,” he said.

The KE chief, Moonis Alvi, said that they have no objection to collect the taxes on behalf of the KMC but he would have to seek permission from the federal government. At this, the CM said that he would get him [the K-Electric] necessary permission from the federal government. “This is a government’s work and aimed at improving the performance of the KMC and I am sure they [fed govt] would support us,” he said. The CM directed Energy Minister Imtiaz Shaikh to get the paperwork completed for getting the federal government’s permission.