Centre-Sindh tensions

Federal govt rejects KMC taxation proposal

Statesman Report

KARACHI: The federal government has refused to allow Sindh to collect the Karachi Metropolitan Corporation (KMC) tax through K Electric bills, terming the proposed measure a burden on Karachiites.

Two days ago, the Sindh government proposed the collection of two KMC taxes — fire tax and conservancy tax — through monthly electricity bills sent to residents to ensure their recovery.

Chief Minister Sindh Murad Ali Shah said the government has spoken to K Electric and National Electric Power Regulatory Authority (NEPRA). Shah said: “I have spoken to Finance Minister Shaukat Tarin also, and just like we collect television bills, we will collect the two KMC taxes as well.”

The chief minister said that the Sindh government “wants KMC to stand on its own feet.”


government’s take

However, during a press conference today, Federal Minister for Planning and Development Asad Umar said that the federal government would not allow Sindh to charge KMC taxes in electricity bills.

The federal minister informed the media that he has spoken to Federal Minister for Energy Hammad Azhar and “we will not approve Sindh’s proposal”. “Institutions much each do their own work.”

Meanwhile, Governor Sindh Imran Ismail stated that tax collection from the people of Karachi via electricity bills will be an additional burden.

Ismail suggested that some other method be used.