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SHC: Municipal taxes cannot be collected through K-Electric bills

The Karachi Metropolitan Corporation (KMC) was temporarily prohibited by the Sindh High Court (SHC) on Monday from collecting Municipal Utility Charges and Taxes (MUCT) through K-Electric bills.

Hafiz Naeem-ur-Rehman, the leader of Jamaat-e-Islami Karachi, and others petitioned the SHC on September 23 to stop the collection of municipal taxes through power bills.

The petitioner claimed that the cost of fire and conservancy services had nothing to do with the amount of electricity consumed.

He said that the KMC’s contested action was illegal and in breach of local government law, which states that every tax that is subject to imposition must be published beforehand so that every citizen subject to it is aware of it and has the opportunity to object if they so choose.

The Karachi Administrator, Barrister Murtaza Wahab, appeared before the SHC at the beginning of the hearing and informed them that the MUCT ranged from Rs. 50 to Rs. 200.

The municipal administrator begged the court not to prohibit the MUCT, claiming that they had cut taxes from Rs 5,000 to Rs 200.

Wahab was then given the go-ahead by Justice Syed Hasan Azhar Rizvi to make the recoveries through a third party.

Make the recoveries anyway you like, he said, “but not through KE bills.

The court also prohibited K-Electric from disconnecting customers’ electrical connections for failing to pay the MUCT.

Wahab argued that the KMC would now receive the taxes, as opposed to earlier when they were going to someone else’s pockets.

Wahab responded that taxes would be utilized to build highways, underpasses, and bridges in exchange for the services the municipal administration would provide to the people.

He reprimanded Wahab about the city’s rising robberies, crumbling infrastructure, and deteriorating roadways.

Wahab then stated that KMC is in charge of 209 roads.

What is the Sindh government doing, the judge questioned, if you are performing all the work?

People already pay property and car taxes, so why are they being subjected to “double charges”? thought the judge.

Justice Rizvi said, “We will reinstate the tax when you would satisfy us.

The court stated that “applying municipal charges through KE is not suitable” and barred the government from collecting municipal taxes through K-Electric until the next hearing.

Written By

Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.

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