Karachi residents to bear brunt of new KMC charges on electricity bills

The Karachi Metropolitan Corporation (KMC) has declared a significant increase in  Municipal Utility Charges and Tax (MUCT), which will now be included in electricity bills. These charges will be used to fund infrastructure development. 

Following the announcement, citizens of Karachi would pay all KMC charges and taxes through their electricity bills.

Director KMC for media affairs Daniyal Sial stated that he believes that the collection of utility charges and taxes through electricity bills would be a transparent method, and ultimately it would result in a huge increase in revenue compared to the past. 

Read: KMC proposes further hike in municipal charges

He added that the mechanism would be effective from April 14, and consumers who use more than 100 units would fall into the category of KMC taxpayers.

According to the formula, consumers consuming 101 to 200 units will have to pay a Rs20 tax.

Similarly, on consumption of 201 to 300 units per month, a Rs40 KMC tax would be taken, while on 301 to 400 units of electricity, consumers will have to pay Rs100 towards utility charges and taxes.

With a consumption of 401 to 500 units of electricity per month, Rs125 KMC charges would be added to the bill, while those consuming 501 to 600 units will be charged Rs150.

Those consuming 601 to 700 units per month will have to pay Rs175, while users of more than 701 units will have to pay Rs300.

However, commercial and industrial users would pay Rs 400 and Rs 500 KMC charges, respectively.

Read: KMC fixes rates for graves at Rs14,300 in Karachi

Daniyal Sial stated that these taxes will be collected by the Metropolitan Municipality for the basic infrastructure of the city, including construction and repair of drains, paving of streets in residential areas, construction of roads, and other small and large works.

Due to the appointment of more than the required number of employees in the Karachi Metropolitan Municipality in the past, the Karachi Municipal Corporation is currently facing an annual shortfall of Rs11 billion in terms of salaries and pensions.