Karachi, In a major development aimed at enhancing urban infrastructure, Mayor Karachi Barrister Murtaza Wahab announced that the Karachi Metropolitan Corporation (KMC) will generate an estimated income of 4 billion rupees by collecting the Municipal Utility Charges and Taxes (MUCT) through Karachi Electric bills. This initiative, as stated by the Mayor during a press conference following the city council meeting on Tuesday, is set to fund development across all Union Councils (UCs) without introducing new taxes, as it reinstates a charge operational since June 2, 2008.
According to Karachi Metropolitan Corporation, the resolution to collect MUCT was passed with the support of 195 council members, signifying a significant collaborative effort within the city’s governance to address longstanding fiscal constraints and improve public services. The MUCT is part of a broader strategy to empower Karachi to manage and expand its services efficiently, ensuring equitable development across the city.
Mayor Wahab emphasized the council’s authority over taxation and praised the legal and political fraternity for their constructive roles during the court hearings that led to this decision. He highlighted the collaborative spirit that marked the resolution’s passage as a pivotal success of the 2024 council, which he believes will be remembered for its proactive governance.
In addition to the MUCT, the council approved several other initiatives including the establishment of an Institute for Cultural Heritage and the Museum of Art under a Public-Private Partnership, allocating 10 acres of land in Bagh Ibne Qasim for the museum. This cultural project aims to educate future generations about Karachi’s rich history and to counteract negative stereotypes by promoting Pakistan’s cultural heritage internationally.
Mayor Wahab also addressed the tariff structure for the MUCT, ensuring a progressive scale that exempts the lowest electricity consumers and places a minimal burden on those using up to 300 units. K Electric, responsible for the collection, will retain a 7.5% administration fee, with the remainder going directly to KMC for transparently managed development projects.
The session was also notable for its approval to collect toll taxes in collaboration with the Excise and Taxation Department, which will further contribute to the city’s revenue for infrastructural enhancements. The meeting concluded with the appointment of Saifuddin Advocate from Jamaat-e-Islami as the Leader of the Opposition, a move that Mayor Wahab lauded as beneficial for the balanced governance of Karachi.