In a recent court hearing at the Sindh High Court, senior lawyer Munir A. Malik challenged the government’s decision to appoint K-Electric (KE) to collect Municipal Charges & Taxes (MUCT) for the Karachi Metropolitan Corporation (KMC) through electricity bills. Malik argued that this move violates contract rules and raised constitutional concerns.
According to Malik, the notification authorizing KE’s engagement for tax collection, issued on Jan 21, 2022, goes against the Sindh Local Government Contract Rules, 2001. He emphasized that as there are multiple service providers in Karachi, the contract should have followed specified rules.
Malik highlighted that KE should not exercise coercive powers under the Electricity Act to collect taxes, as the disconnection of power is regulated by federal law. He pointed out that neither the Sindh Local Government Act, 2013 nor the National Electric Power Regulatory Authority (NEPRA) Act 1997, empower KE to disconnect power due to non-payment of compulsory taxation.
The amicus curiae also contended that the MUCT revision should follow proper procedures, including public notification and adherence to imposition rules.
The case originated from petitions filed last year against the provincial government’s decision to outsource MUCT collection to KE. The court had earlier restrained KE from collecting MUCT through electricity bills.
As the legal battle continues, questions arise about the authority of private entities like KE in tax collection and the adherence to legal procedures in implementing municipal charges.
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