KARACHI – The Karachi Metropolitan Corporation (KMC) has launched a new system for collecting municipal taxes directly through electricity bills, starting from July 2024. 

K-Electric, the city’s primary electricity provider, has begun including these charges in monthly bills, marking a significant change in how municipal taxes are collected in Karachi.

Karachi’s Mayor, Murtaza Wahab, has announced that this new tax collection method is expected to generate an estimated Rs4 billion in revenue. The income, derived from the Municipal Utility Charges Tax (MUCT), will be allocated to fund development projects across all Union Councils in Karachi. This initiative is part of a broader strategy to improve the city’s infrastructure and public services.

The mayor emphasised his commitment to transparency in collecting and utilizing these funds. He has pledged to personally oversee all financial matters related to the initiative, ensuring close monitoring of both the revenue generated and its expenditure. 

Breakdown of the New Municipal Tax Charges

Karachi residents will notice an additional charge on their electricity bills, calculated based on their monthly electricity consumption. The tax structure is as follows:

101 to 200 units: An additional Rs20

201 to 300 units: An additional Rs40

301 to 400 units: An additional Rs100

401 to 500 units: An additional Rs125

Over 700 units: An additional Rs300

Commercial users will also be affected, with a municipal tax of Rs400 added to their bills.