SHC rejects a petition challenging the collection of municipal taxes in electricity bills

SHC heard an appeal against the tax collection found on electricity bills.

The Sindh High Court questioned whether the petitioners had contested the Finance Act in their ruling, stating that revenue collection is mandated under the act.

The attorney for K-Electric asserted at this point that residential customers who now pay income tax are exempt from the advance income tax.

He went on to explain that, like other commodities, electricity is a sellable good and is liable to taxes.

In reference to fuel adjustments, the attorney clarified that they are determined by gasoline prices and frequently put into effect months later, which may be unjust to tenants.

To guarantee equitable control of electricity, the National Electric Power Regulatory Authority (NEPRA) evaluates and approves fuel modifications for a predetermined amount of time.

inThe Karachi Metropolitan Corporation (KMC) started collecting a municipal fee on K-Electric (KE) bills from July.

The information indicates that different KE clients have different rates for Municipal Utility Charges and Taxes (MUCT) based on their consumption.

The cost to domestic customers using 101–200 units is Rs 20; for 201–300 units, Rs 40; for 301–400 units, Rs 100; for 401–500 units, Rs 125; for 501–600 units, Rs 150; for 601–700 units, Rs 175; and for more than 700 units, Rs 300.

There will be a one-time fee of Rs 400 for commercial and industrial users.Barrister Murtaza Wahab, the mayor of Karachi, stated that the money received from local taxes