Centre refuses to allow KMC to collect taxes through power bills

KARACHI: The federal government on Saturday refused to allow Sindh to collect the Karachi Metropolitan Corporation (KMC) tax through K-Electric bills, terming the proposed measure a burden on Karachiites.

Two days ago, the Sindh government proposed the collection of two KMC taxes — fire tax and conservancy tax — through monthly electricity bills sent to residents to ensure their recovery. Sindh Chief Minister Syed Murad Ali Shah said that the federal government had so far been supportive and helping to allow the K-Electric to collect two of the KMC taxes through monthly electricity bills of the K-Electric. “Some people who do not want to see revival of the KMC and it gaining the financial strength are opposing the move forgetting that the TV licence fee has already being collected through electricity bills.” This the Sindh CM said while talking to the media at Mazar-i-Quaid where he visited to pay rich tribute to the Father of the Nation, Quaid-i-Azam Muhammad Ali Jinnah, on the occasion of his death anniversary on Saturday.

To a question, CM said that the KMC had earlier used to set a target of collecting Rs1 billion as fire tax and conservancy tax every year but it could hardly collect Rs250 million. “Therefore, it has worked out a plan to collect both the taxes, after reducing their rates, through electricity bills,” he said and added “the KMC was not introducing any new tax as these are old taxes already being collected”. The CM said the KMC under the improved tax collection plan has decided to collect it along with electricity bills so that collection targets could be met in the interest of the city and its people. “I am surprised that some people have come out to oppose it for nothing and forgetting that TV licence fee is already being collected through the power bills so why not the KMC taxes,” he questioned.

Shah disclosed that he has talked to the Federal Finance Minister Shaukat Tarin and Nepra chairman to allow the KMC to collect its taxes through electricity bills and they were very positive and assured their support and full cooperation in this regard. However, during a press conference Saturday, Federal Minister for Planning and Development Asad Umar said that the federal government would not allow Sindh to charge KMC taxes in electricity bills.

The federal minister informed the media that he had spoken to Federal Minister for Energy Hammad Azhar and “we will not approve Sindh’s proposal". "Institutions must do their own work." Meanwhile, Sindh Governor Imran Ismail stated that tax collection from the people of Karachi via electricity bills will be an additional burden. Ismail suggested that some other method be used. Meanwhile, addressing the media from the KMC office, Karachi Administrator Murtaza Wahab said, “We should all support KMC.” Wahab requested the federal government not to create "hurdles" in the affairs of KMC. He told reporters that Asad Umar and Minister for Maritime Affairs Ali Zaidi had opposed the proposal of the Sindh government. “KMC is trying to stand on its own and hence, I hope Prime Minister Imran Khan will support Sindh in this regard,” he said.