K Electric is a subsidiary of the federal government, cannot collect provincial taxes, judicial assistant
Karachi: The Sindh High Court has asked for more arguments from both parties at the upcoming hearing on the petition of Ameer Jamaat-e-Islami Karachi Hafiz Naeem-ur-Rehman against taking KMC charges by K Electric.
A two-member bench headed by Justice Nadeem Akhtar heard the petition of Amir Jamaat-e-Islami Karachi Hafiz Naeemur Rehman against taking KMC charges through K Electric.
Jamaat-e-Islami lawyer Usman Farooq Advocate, Judicial Assistant Munir A. Malik and Mayor Karachi Murtaza Wahab appeared in the court.
Barrister Murtaza Wahab said that under Article 100, KMC can take charges in the electricity bill. From which approximately 4 billion rupees will be recovered. Which will be spent for the development of Karachi. Other federal taxes including TV are charged in K Electric bills, so KMC wants to charge the same.
Judicial assistant and senior lawyer Munir A. Malik stated that K-Electric is a subsidiary of the federal government and cannot collect provincial taxes. K Electric can disconnect electricity on payment of electricity bill but KMC has no authority to disconnect electricity on non-payment of tax.
Murtaza Wahab said that due to non-receipt of KMC tax, salaries of employees are stopped.
The court adjourned the hearing till January 16 after seeking further arguments from both the parties for the next hearing.
After the hearing, Mayor Karachi Murtaza Wahab said in an informal conversation that 10 and a half billion rupees is only the pension of the employees. How can a government organization function without a system of taxation? The tax which used to be 5 thousand rupees in the past has been reduced to 50 rupees today. The money that used to go into people’s pockets will now come into the account and will not be stolen. Every Pakistani has an objection, I think no citizen is satisfied with the taxation system. I think this citizen also belongs to those philanthropists who donate lakhs and crores of rupees in charity. If 50 rupees will be received by KMC from 2.3 lakh consumers, then KMC will get 4.5 billion rupees in tax.
Jamaat-e-Islami spokesperson said that K Electric already owes KMC billions of rupees. How can an insolvent entity be empowered to collect taxes? KMC already has its own tax collection mechanism in place. Why Murtaza Wahab is eager to give tax recovery to K Electric instead of ending corruption in KMC institutions.
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