Karachi Metropolitan Corporation (KMC) has reached a controversial agreement with K-Electric regarding Municipal Utility Charges and Taxes (MUCT). Now residents of the port city will have to pay MUCT in the electricity bills.
According to Mayor Karachi Barrister Murtaza Wahab, the agreement follows a series of deliberations and committee meetings focused on implementing the court-mandated tax in a manner that provides relief to low-income households.
Under the agreement, which follows extensive committee deliberations and meetings, Mayor Karachi Barrister Murtaza Wahab highlighted key provisions aimed at providing relief to low-income households. Notably, domestic consumers using up to 100 units of electricity will be exempt from MUCT. For those consuming more than 100 units, the charges will vary from Rs. 20 for 101 to 200 units, Rs. 40 for 201 to 300 units, Rs. 100 for 301 to 400 units, Rs. 125 for 401 to 500 units, Rs. 150 for 501 to 600 units, Rs. 175 for 601 to 700 units, and Rs. 300 for consumption over 700 units. Commercial and industrial consumers will be charged a flat rate of Rs. 400 across all categories.
It is worth mentioning here that in the past, residents of Karachi and some political parties, particularly Jamaat-i-Islami (JI), had strongly opposed the inclusion of MUCT in electricity bills and had filed court cases against it.
