By Imran Ayub

Copyright dawn

Fixed rate for industrial, commercial consumers increased from Rs400 to Rs750
• Opposition leader asks KE to withdraw MUCT increase in electricity bills
• Mayor claims City Council approved hike in its budget session

KARACHI: In a move drawing sharp criticism from the opposition for allegedly violating “defined legal limits”, the Karachi Metropolitan Corpor-ation (KMC) has increased the rates of the Municipal Utility Charges and Taxes (MUCT) for industrial and commercial users from Rs400 to Rs750.

Members of the business community complained that they were being charged nearly double the previous amount in the head of the MUCT.

The MUCT are collected via K-Electric bills from its consumers living within the jurisdiction of the KMC.

Leader of the Opposition in the City Council Advocate Saifuddin of the Jamaat-i-Islami has sent a legal notice to KE Chief Executive Officer Moonis Alvi, demanding that the power utility immediately withdraw the increase in the MUCT, which was made “unlawfully” without the approval of the elected City Council.

The notice highlighted that the KE raised MUCT rates to Rs750 per month for commercial properties, despite the last City Council resolution, which fixed the rate at Rs400 per month in June 2024. A subsequent proposal to increase the rate to Rs550 was deferred in 2025, and no new resolution has been passed since then, read the notice.

“The KE, which only acts as a collection agent on behalf of the KMC, has no legal authority to alter or enhance MUCT rates,” said Mr Saifuddin.

He said the arbitrary hike not only burdened citizens of Karachi, but also undermined the authority of the elected City Council and insulted the public mandate.

City Mayor Murtaza Wahab, however, expressed his “wonders” over “unawareness” of the opposition and its leaders about the “facts and procedures”.

“This increase has in fact been approved by the City Council in the budget session,” he told Dawn.“So this argument doesn’t stand that it’s a violation of the rules.”

He continued: “Secondly we only increased slab for the industrial and commercial users. The reason is this segment of the city is more prone to fire and other incidents where the municipal resources and utilities are spent more. We should not mislead people only for political point scoring.”

‘No new charges’

KMC officials claimed that no new charges were being imposed under the MUCT head.

“Historically, industrial and commercial consumers were charged up to Rs5,000 under the same category,” said an official.

The slab for industrial and commercial consumers had initially been reduced to Rs400 by the mayor, but it was being revised upward in the latest budget, he added.

“The funds collected through this municipal tax will be utilised for essential services, including the fire brigade and road maintenance,” added the official.

The KMC in August 2024 formally notified the collection of MUCT through K-Electric.

The KMC and the KE had signed an agreement in June 2022 which finally became effective from July 2024 after the City Council approved the levy.

The consumers are charged as per category, which is notified by the KMC from time to time.

Referring to different slabs of the MUCT, an official said that the KE consumers receiving bills of up to 100 units remain exempted from the taxes and those consuming units between 101 and 200 pay Rs20 every month.

Those consuming units between 201 and 300 pay Rs40 and those consuming between 301 and 400 units pay Rs100 through their KE bills.

The KE consumers consuming 401-500 units pay Rs125, the consumers of units between 501 and 600 pay Rs150, the consumers of 601 and 700 units pay Rs175 and those consuming more than 700 units pay Rs300 in their monthly bills.

All categories of commercial and industrial consumers pay Rs400 each with their electricity bills.

Published in Dawn, September 15th, 2025