The Karachi Metropolitan Corporation (KMC) has announced the implementation of a new municipal tax that will be applied to K-Electric (KE) electricity bills. The tax rate will vary depending on the level of electricity usage.

The following are the additional charges to be levied on electricity bills:

• 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
• Rs. 300 for usage exceeding 700 units.

KMC has set a uniform rate of Rs400 for commercial and industrial consumers as part of the new Municipal Utility Charges and Taxes (MUCT) levied on K-Electric (KE) bills.

According to Barrister Murtaza Wahab, the Mayor of Karachi, the funds collected from this municipal tax will be used to support development initiatives across the city.

Under the agreement between KMC and KE, the power utility will retain 7.5% of the collected funds, while 50% will be allocated to cover KE’s debts owed to the KMC.

A KMC official has stated that the use of these funds will be fully transparent, with monthly updates on the KMC’s website. This approach is intended to provide the KMC with greater financial flexibility and benefit the city’s municipal administration at the union council level.

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The municipal tax, known as the Municipal Utility Charges and Taxes (MUCT), will be levied based on the amount of electricity consumed by KE customers.