Pay Bills

Here’s how much KE consumers have to pay KMC in taxes

A person holds his K-Electric electricity bill. — Twitter/File

KARACHI: The Karachi Metropolitan Corporation (KMC) aims to earn around Rs 3 billion a year by collecting Municipal Utility Charges and Taxes (MUTC), through K-Electric (KE) electricity bills, The news reported.

According to an agreement signed between KMC and KE, the power utility would retain 7% of the amount as collection fee, which amounts to Rs 300 million.

A KMC official said KE would collect the tax on 24 million units across the city.

“KMC’s financial condition will improve significantly after tax collection,” the official said, adding that the metropolitan corporation plans to launch many development projects in the city with the collected money.

The MUCT would be collected according to the volume of electricity bills.

For 200 units, Rs50 would be collected. For more units, Rs150 to Rs200 would be collected.

Earlier, the official explained, it was decided that the industrial units would pay Rs.5,000 each, but now the amount has been reduced to Rs.200 so that everyone can pay it easily.

Under the Sindh Local Government Act 2021, the provincial government had in April ordered the electricity utility to collect MUCT.

Local government secretary Najam Ahmed Shah has issued a notification to authorize the electricity utility to collect MUCT with electricity bills.

In a press release, KE said it would only follow government instructions.

Previously, KMC MUCT fees were levied based on the covered area of ​​the units. However, they would now be collected based on units of electricity consumed.

MUCT was first introduced by a KMC Council resolution in 2008 when Syed Mustafa Kamal was the Nazim of Karachi.