The municipal utility charges and taxes (MUTC) collected by the Karachi Metropolitan Corporation (KMC) through K-(KE) Electric’s power bills are expected to bring in an estimated Rs3 billion each year.
According to a contract between the KMC and KE, the power company would keep 7% of the money as collection costs, or Rs 300 million.
According to a KMC representative, the tax would be collected from 24 million units around the city.
The official predicted that the KMC’s financial status would significantly improve following the tax collection and stated that the metropolitan corporation intended to launch several development projects in the city using the funds raised.
The amount of electricity bills would determine how much MUCT was collected.
A 50 rupee fee would be charged for 200 units. Rs150 to Rs200 would be charged for additional units.
The sum had previously been set at Rs5,000 per industrial unit, but now it had been lowered to Rs200 so that everyone could pay it simply, the official stated.
The provincial government has instructed the electricity company to collect MUCT in April pursuant to the Sindh Local Government Act 2021.
Najam Ahmed Shah, the local government secretary, issued a notification allowing the power company to charge MUCT for electricity.
The KE declared in a news release that it will solely abide by the government’s directives.
The covered area of the units used as the basis for collecting the KMC MUCT fees in the past. Now, though, they would be collected in accordance with the amount of power used.
Syed Mustafa Kamal served as the nazim of Karachi in 2008, the year the MUCT was first mentioned in a KMC Council decision.
