Sindh govt proposes collection of two taxes in Karachi through electricity bills

Statesman Report

KARACHI: The Sindh government on Wednesday unveiled its plan to collect two taxes on behalf of the Karachi Metropolitan Corporation (KMC) — fire tax and conservancy tax — from the citizens of Karachi through the monthly K-Electric bill.

The proposal was discussed in a meeting comprising officials of the power utility and municipal departments, chaired by Chief Minister Syed Murad Ali Shah.

According to a statement from the CM House, the meeting was convened to discuss the tax collection of the KMC and district municipal corporations through KE monthly bills.

The provincial chief executive said the rationale behind the move was to financially strengthen local government institutions. “We want to improve local tax collection,” he added.

Shah told the meeting that Rs100 and Rs200 will be charged respectively from two categories of consumers [to be carved by the provincial administration] in the KE bill.

He informed that the KE will charge the two taxes from its 2.56 million consumers.

“If formally signed, the agreement will help the KMC collect Rs9 billion annually,” Shah said, while recalling that the KMC currently collects Rs210m a year from the two taxes.

He insisted the initiative will strengthen and empower the KMC on the financial front to undertake development works without any obstacle.