Karachi: Decision reserved on petitions against collection of municipal tax in electricity bills

Karachi: The Sindh High Court reserved its decision on the petitions against the collection of municipal tax in electricity bills.

A two-member bench headed by Justice Salahuddin Paiwar heard the petitions against the collection of municipal tax in electricity bills. Justice Salahuddin Paiwar inquired whether there is a similar situation in other provinces or not, you sit down, I did not question you, the court stopped Mayor Karachi Murtaza Wahab from speaking.

Jamaat-e-Islami lawyer Usman Farooq advocate stated that KMC is not getting any benefit according to this agreement. KMC still has a debt of Rs 1 billion 56 crore. This agreement is only for the benefit of K Electric. In case of dispute, the authority to take action against the citizen is not with the MC but with K Electric.

Usman Farooq Advocate said that this agreement has been made for the benefit of K Electric. It is a contract in which the names of the contracting parties are not clear. Even ID card numbers of witnesses are not recorded. Justice Salahuddin Paiwar remarked that we are asking for the original contract so that it is clear, let us know whether the Karachi Municipal Corporation has the authority to outsource or not.

K Electric’s counsel submitted that KMC has the power to outsource under the Local Government Act. Justice Salahuddin Paiwar while giving remarks said that it is our tragedy that we have not empowered the local governments. Unfortunately, Parliament did not empower local governments.

The court asked the lawyer of Jamaat-e-Islami that if you become mayor tomorrow, what will you do? Usman Farooq Advocate stated that there are orders of the Supreme Court, where the system of local governments is clear.

The court asked the lawyer of the petitioner that you say the matter should go to the council? Justice Salahuddin Paiwar remarked that the council should be strong and major decisions should also be made in the council. The lawyer of K Electric stated that KMC itself does not pay the bill, we have also disconnected the electricity of the mayor’s office. The court ruled in favor of K Electric.

The court remarked that the condition of the councils is that instead of 100, 2,000 people have been recruited. Councils should be strengthened so that the real problems of citizens can be solved. Jamaat-e-Islami also has the same position that the council should be empowered.

The Additional Advocate General stated that the City Council has approved the agreement. The court inquired as to where the council was during the administrator’s tenure. What is the legal status of administrator agreement?

The Additional Advocate General submitted that the petitioners did not challenge the Rules, as per the Rules, the KMC had the authority to enter into the agreement. Petitioners themselves are admitting that the MC is empowered to levy the tax. Justice Salahuddin inquired that who will benefit from it is important, why should any other authority benefit?

Mayor Karachi said that the beneficiary will be the people of Karachi, we are ready to present this agreement before the council. I am sure the approval will be taken from the council. The court inquired that the problem is how much money will you give to your electric and why? Justice Salahuddin Paiwar said in his remarks that why should the KMC give the power of action to another body? The public advocate maintained that no provision of the Local Government Act was violated.

Justice Salahuddin Paiwar remarked that the Mayor is saying that he is ready to re-evaluate the agreement. Murtaza Wahab said that Sindh government’s lawyers cannot give a final opinion on this, KMC’s lawyers are there to give our stand.

Sindh government’s lawyer took the position that there is a tax issue of billions of rupees, there are decisions of the Supreme Court in public interest cases. The court remarked, “Why don’t you treat commercial and residential customers separately?” The government lawyer stated that only Rs. 50 is being demanded on bills of Rs. 12,000 and Rs. 18,000.

Mayor Karachi Murtaza Wahab said that earlier 200 to 500 rupees are being taken, we reduced the tax to give relief to the citizens. Now Rs.50 to Rs.200 will be charged. The court remarked that why not take more than those who have more income? Commercial tax should be increased.

Justice Salahuddin Paiwar remarked that people who are earning crores of rupees, will they take 200 rupees from them? You will bill all citizens and business people alike? Will they take the same amount from those who are earning a few thousand rupees? Murtaza Wahab said that I assure you, the details of the money that will come will be available on the website. I will ensure transparency.

The court remarked that K Electric is assuring that the electricity will not be cut for non-payment of this tax. K Electric’s counsel stated that we cannot give assurances, we are bound to implement Nepra’s directives. The court remarked that an opportunity of at least 3 months should be given, if payment is not made for 3 consecutive months, action should be taken. K Electric’s counsel argued that we cannot make a separate system for KMC’s tax of Rs 50. Action will be taken if one does not pay the bill.

Petitioner Tariq Mansoor advocate stated that electricity is the basic right of citizens, if KMC bill is not paid then electricity will be cut off. There was a payment dispute between KMC and K Electric. An agreement was reached on the stack of citizens to pay the amount of K-Electric. This deal will only benefit K Electric, not citizens or KMC. We want to empower KMC, not K Electric.

Murtaza Wahab said that he will take the matter to the council for re-examination. The court remarked that it should not be the case that the resolution is passed and people’s opinions are not heard. Justice Salahuddin Paiwar remarked that some resolutions are passed and the whole parliament remains silent.

The mayor said that he will try not to apply the municipal tax to consumers with up to two hundred units. Justice Salahuddin Paiwar remarked that those with bills up to 10,000 rupees should be exempted.

The lawyer of Jamaat-e-Islami stated that the opposition should be taken into confidence and work according to all the rules. Mayor Karachi said that I will form a committee and work by taking all stakeholders into confidence. The court said that there should be a work in which transparency can be seen, the wisdom of the council can be seen. After hearing the arguments, the court reserved its decision.

Justice Salahuddin Paiwar remarked that the interim decision will be issued today. Mayor Karachi submitted a written statement to the court through KMC’s lawyer Hasan Abidi Advocate.

The written statement submitted by the Mayor of Karachi has assured to review the agreement between KMC and K Electric, service charges can be deducted directly by K Electric and no other deductions are made directly. will A special committee of council members will be formed to consider it. The agreement will be submitted to the council for approval. However, the tax will not be levied on citizens who pay less than Rs 10,000 to K Electric.