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SHC restricts collection of KMC taxes with electricity bills for now

Published

2 years ago

Farwa

SHC remarks applying municipal charges via KE is inappropriate.
Says it will restore tax collection if city administration satisfies it.
Restricts KMC from collecting taxes under KE bills till next hearing.

The Sindh High Court (SHC) on Monday temporarily restricted the Karachi Metropolitan Corporation (KMC) from collecting municipal taxes with electricity bills.

The court remarked that the tax collection will be restored when the city administration satisfies it over the matter.

The directive came during the hearing of a plea filed on September 23, by Jamat-e-Islami leader Hafiz Naeemur Rehman, against KMC’s tax collection in K-Electric bills.

Under the Sindh Local Government Act 2021, the provincial government had in April directed the power utility to collect municipal utility charges and taxes (MUTC).

As per an agreement signed between the KMC and K-Electric (KE), the former aims to earn an estimated Rs3 billion yearly by collecting MUCT, through KE’s power bills.

Under the agreement, the power utility would keep 7% of the amount as its collection charges, which amounts to Rs300 million.

An official of the KMC said the KE would collect the tax from 24 million units across the city.

Today’s hearing

During today’s hearing, Karachi Administrator Murtaza Wahab informed the court that the KMC taxes range from Rs50 to Rs200, requesting the court not to restrict the tax collection now. He assured the court of presenting all the details at the next hearing.

“Taxes as high as Rs5,000 have been waived and reduced to Rs200,” he said.

At this, the court told Wahab to make recoveries through third parties.

“Make the recoveries however you want but not through KE,” it remarked.

The court also restricted KE not to cut off power connections of consumers who are unable to pay the taxes.

“Earlier, the taxes were going to someone else’s pockets but now KMC will receive it,” Wahab contended.

When asked about what facilities the city administration would give to the citizens in exchange of taxes, Wahab said that the taxes will be used in construction of roads, underpasses and bridges.

“Will you do all [your] work with people’s money?” the court inquired.

“The Centre is giving a lot of money to the province. Karachi is provided with funds like alms (bheek),” Justice Hassan Azhar Rizvi.

He rebuked Wahab referring to the dilapidation of roads and other infrastructural faults and increasing robberies in the city.

At this, Wahab said that KMC has the responsibility of 209 roads.

“If you are doing all of the work then what is the Sindh government doing?” the justice asked.

He objected to why “double charges” are imposed on the people when they are already paying property and motor vehicle taxes.

“Applying municipal charges through KE is not appropriate,” the court remarked while restricting KMC from collecting the municipal taxes with electricity bills till the next hearing.

Business

Pakistan’s gold prices continue to decline.

Published

2 days ago

Farwa

The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.

Business

Price of LPG “slashed” by Rs. 20 per kilogram

Published

2 days ago

Farwa

Sources claim that LPG rates have been lowered by Rs 20, making the cost per kilogram drop from Rs 280 to Rs 260.

It is noteworthy to remark that the costs of LPG were reduced by Rs 20 per kilogram earlier, resulting in a total reduction of Rs 40 per kilogram within a few weeks.

The price of liquefied petroleum gas for the month of May 2024 was lowered by the Oil and Gas Regulatory Authority (OGRA) on April 30.

The LPG tariffs were lowered by Rs 11.88 to Rs 238.46 per kilogram in accordance with the OGRA’s notice. On Wednesday, May 1, 2024, the new rates will go into effect.

In April of last year, the price per kilogram of LPG was Rs 250.34. pricing reduction of Rs 140.18 has resulted in a new pricing for home LPG cylinders set for May 2024 of Rs 2813.85.

The OGRA reported a drop in liquefied petroleum gas pricing in April. The price of LPG is now Rs 250.34 per kg instead of Rs 256.78 due to a reduction of Rs 6.44 per kg.

The price of the household cylinder was fixed at Rs 2954.03 for the month of April, down from Rs 3030.12, a decrease of Rs 76.9.

Business

ADB delegation stops by FBR headquarters

Published

2 days ago

Farwa

Senior Director ADB Tariq Niazi oversaw the expedition, which also involved Sana Masood, Farzana Noshab, and Senior Public Sector Management Specialist Laisiasa Tora. The meeting included presentations from economists as well, according to an FBR press release.

The officers focused on structural and policy adjustments as they discussed the Domestic Resource Mobilization Program’s implementation at the meeting.

$300 million was given to the Pakistani government by ADB in December 2023 as a result of the hard work and dedication of FBR. Better laws, regulations, and institutional capability for the FBR were established by Sub-Program I.

With the $300 million in funding provided by the Asian Development Bank (ADB) to the Government of Pakistan in December 2023, the delegation conveyed satisfaction with the program’s effective launch.

The FBR also underlined how crucial digitization is to recording the economy and boosting productivity in a sustainable way.

In order to promote the Government of Pakistan’s Digital Tax Administration Project, both parties decided to look into measures to improve their cooperation.