Residents of Karachi are set to experience an increase in their electricity bills as the Karachi Metropolitan Corporation (KMC) has implemented a new municipal tax on K-Electric (KE) bills. The tax, known as the Municipal Utility Charges and Taxes (MUCT), will vary based on the amount of electricity consumed by KE customers, adding an extra financial burden on both domestic and commercial consumers.
Breakdown of New Municipal Charges for Domestic Consumers
The additional charges for domestic consumers are structured as follows:
- 101 to 200 units: Rs. 20
- 201 to 300 units: Rs. 40
- 301 to 400 units: Rs. 100
- 401 to 500 units: Rs. 125
- 501 to 600 units: Rs. 150
- 601 to 700 units: Rs. 175
- Above 700 units: Rs. 300
Charges for Commercial and Industrial Consumers
For commercial and industrial consumers, a flat rate of Rs. 400 will be added to their electricity bills, regardless of the amount of electricity consumed.
Purpose and Allocation of the Collected Tax
According to Barrister Murtaza Wahab, the Mayor of Karachi, the funds generated through this municipal tax will be directed towards development projects across the city. The introduction of this tax is seen as a move to enhance the city’s infrastructure and support various civic initiatives that have been long overdue.
Distribution and Transparency of Collected Funds
An agreement has been established between KMC and K-Electric, under which the power utility company will retain 7.5% of the collected funds. Additionally, 50% of the funds will be allocated to repay K-Electric’s debts to the KMC.
KMC officials have assured the public that the utilization of these funds will be fully transparent. To maintain accountability, KMC plans to provide monthly updates on their website, detailing how the collected money is being spent. This transparency initiative aims to build trust with the residents and ensure that the additional charges truly benefit the city’s municipal administration, particularly at the union council level.
Impact on Karachiites
This new municipal tax comes at a time when many residents are already grappling with high electricity costs and economic challenges. The added charges, while intended to support the city’s development, may place additional financial pressure on households and businesses.
As the implementation of these charges begins, Karachiites will be closely monitoring the KMC’s efforts to ensure that the funds are used effectively to improve the city’s infrastructure and services.
