KMC Seeks Time in Case Against Municipal Tax Collection Through Electricity Bills

Karachi: The Karachi Metropolitan Corporation (KMC) has requested more time in the case challenging the collection of municipal taxes through electricity bills.

The Sindh High Court on Tuesday heard petitions against the inclusion of municipal charges in power bills. During the hearing, KMC’s assistant counsel sought an adjournment, stating that the senior lawyer was unavailable. The court granted the request but directed that the senior counsel’s presence must be ensured at the next hearing.

Petitioner’s counsel, Tariq Mansoor, argued that so far, Rs 2.64 billion have been collected through taxes imposed in electricity bills. He maintained that under the Local Government Act, only government institutions are authorized to collect taxes, and no third party can serve as a revenue collector.

Mansoor further contended that the imposition of Municipal Utility Charges and Taxes (MUCT) violates the Sindh Local Government Ordinance 2013, adding that NEPRA has already declared K-Electric’s collection of KMC taxes unlawful. He accused Karachi Mayor Murtaza Wahab of violating the Sindh High Court’s May 29, 2024, orders, stating that the mayor neither briefed committees nor allowed debate in the council on the tax collection matter.

The court adjourned the hearing until December 4.