KMC barred from collecting municipal tax from cantonment areas

KARACHI: A constitutional bench of the Sindh High Court has barred the Karachi Metropolitan Corporation (KMC) from collecting the municipal utility charges and taxes (MUCT) from cantonment areas.

The bench ruled while hearing a petition filed against the collection of municipal taxes by KMC through electricity bills from residents of the Malir Cantonment Board.

The petitioner’s counsel, advocate Usman Farooq, argued that the Malir Cantonment Board was already charging conservancy tax. He said that KMC had added municipal charges to electricity bills as well.

“Two institutions cannot collect municipal taxes simultaneously, and KMC cannot collect municipal taxes from cantonment areas,” he agrued.

He further submitted that the Malir Cantonment Board was already charging higher taxes compared to the KMC. He requested the court to restrain the KMC and the K-Electric from collecting municipal taxes in cantonment areas and order the Malir Cantonment Board to deduct taxes equivalent to KMC’s rates.

After hearing the case, the court barred KMC from collecting municipal taxes from all cantonment boards.

It ruled that the collection of municipal taxes in cantonment areas falls under the authority of cantonment boards. The court also directed the K-Electric to stop collecting MUCT through electricity bills from cantonment areas.

The court instructed that K-Electric must not collect MUCT charges from residents of cantonment boards. The constitutional bench disposed of the petition.