On Sunday, Mayor Karachi Barrister Murtaza Wahab announced that a fundamental agreement has been reached between the Karachi Metropolitan Corporation (KMC) and K-Electric regarding the Municipal Utility Charges and Taxes (MUCT).
The City Council has approved a resolution to collect this tax in accordance with the court’s decision. Mayor Wahab explained that a committee was formed to address this issue, holding regular meetings and ultimately recommending the resolution sent to the City Council.
In line with the court’s decision, the agreement aims to provide maximum relief to low-income individuals. Consumers using up to 100 units of electricity will be exempt from the tax, and K-Electric will not make any direct deductions beyond the municipal service charges. The City Council has formally approved the resolution based on these recommendations.
The agreement includes a structured charge system:
- Exemption for consumers using up to 100 units
- 20 rupees for 101 to 200 units
- 40 rupees for 201 to 300 units
- 100 rupees for 301 to 400 units
- 125 rupees for 401 to 500 units
- 150 rupees for 501 to 600 units
- 175 rupees for 601 to 700 units
- 300 rupees for those consuming over 700 units
- For commercial and industrial consumers, a charge of 400 rupees will apply across all categories.
Mayor Wahab stated that this implementation will enable the KMC to earn four billion rupees annually under MUCT, which will be spent transparently on the welfare and development of the city. He assured that this system will be made more transparent and organized.
Barrister Wahab emphasized that the current tax is much less than what was collected during former City Nazim Mustafa Kamal’s tenure. He reassured citizens that the collected tax would be spent transparently on the city’s development, with him personally overseeing all income and expenses related to this fund.
