Karachi, Pakistan: The Sindh High Court (SHC) has dismissed a petition challenging K-Electric’s (KE) collection of municipal tax in electricity bills.
The SHC ruled that the tax collection is imposed under the Finance Act and questioned whether the petitioners had challenged the act itself. ARY News
K-Electric’s lawyer argued that advance income tax does not apply to residential consumers who already pay income tax. He also clarified that electricity is a sellable commodity and is subject to taxation like other goods.
Regarding fuel adjustments, the lawyer explained that they are regulated according to fuel prices and are often implemented months later. NEPRA assesses and approves fuel adjustments to ensure fair regulation of electricity charges.
The SHC’s decision upholds K-Electric’s right to collect municipal tax and provides clarity on the taxation of electricity bills in Sindh.
