KARACHI: The Sindh High Court (SHC) Tuesday dismissed a petition challenging municipal tax collection in electricity bills by K-Electric (KE).
SHC heard the plea against collection of tax collection in the electricity bills.
The Sindh High Court in its verdict said the tax collection is imposed under the Finance Act and questioned whether the petitioners had challenged the act itself.
At this juncture, K-Electric’s lawyer argued that the advance income tax does not apply to residential consumers who already pay income tax.
He further clarified that electricity is a sellable commodity and, like other goods, is subject to taxation.
Regarding fuel adjustments, the lawyer explained that these are regulated according to fuel prices and often implemented months later, which could be unfair to tenants.
The National Electric Power Regulatory Authority (NEPRA) assesses and approves fuel adjustments for a specific period, ensuring fair regulation of electricity charges.
The Karachi Metropolitan Corporation (KMC) is collecting a municipal tax in K-Electric (KE) bills from July.
According to the details, the Municipal Utility Charges and Taxes (MUCT) rates vary according to the consumption of the KE consumers.
The domestic consumers who are using 101 to 200 units will be charged Rs20; Rs40 would be charged for 201 to 300 units; Rs100 for 301 to 400 units; Rs125 for 401 to 500 units; Rs150 for 501 to 600 units; Rs175 for 601 to 700 units; and Rs300 for above 700 units.
The commercial and industrial consumers will be charged a flat rate of Rs 400.Mayor Karachi Barrister Murtaza Wahab said that that the revenue generated from the municipal tax will be utilised to fund development projects in the city.
