Karachi’s tax dilemma

Our municipal institutions are revenue-starved. Be it the Karachi Metropolitan Corporation (KMC), towns or the union committees, the problem is the same. To consolidate finances, the KMC has been pursuing the imposition of municipal utility charges and taxes (MUCT) for some time now. The decision to collect Municipal Utility Charges and Taxes (MUCT) in Karachi is yet to take any concrete shape. Several weeks ago, the mayor succeeded in passing a resolution through the City Council to move ahead with his idea of engaging Karachi Electric (KE) to collect this levy. The matter has landed in the Sindh High Court. A strong opposition has been voiced by different quarters, especially the opposition ranks in the City Council. Conversations with ordinary people inform that the current economic recession and the depressing situation do not make it an opportune time to impose any new levy. The citizens are already grappling with the issues of power shutdowns and poor levels of service in water, sewerage and drainage.