The Karachi Metropolitan Corporation (KMC) has implemented a new municipal tax on K-Electric (KE) bills, as reported by a private news channel. This Municipal Utility Charges and Taxes (MUCT) will differ based on the amount of electricity consumed by KE customers. Domestic consumers will be subject to the following rates:
- Rs. 20 for consumption between 101 and 200 units
- Rs. 40 for consumption between 201 and 300 units
- Rs. 100 for consumption between 301 and 400 units
- Rs. 125 for consumption between 401 and 500 units
- Rs. 150 for consumption between 501 and 600 units
- Rs. 175 for consumption between 601 and 700 units
- Rs. 300 for usage exceeding 700 units
Commercial and industrial consumers will incur a flat charge of Rs. 400. According to Mayor of Karachi, Barrister Murtaza Wahab, the revenue generated from this tax will be utilized to fund various development projects throughout the city.
Under the agreement between KMC and KE, the power utility will retain 7.5% of the collected revenue, with half of the amount dedicated to settling KE’s outstanding debts to the KMC. A KMC official previously assured that the utilization of these funds would be entirely transparent, with detailed monthly reports accessible on the KMC’s website. This strategy is expected to provide the KMC with increased financial flexibility and enhance municipal services at the union council level.
