KARACHI: The Karachi Metropolitan Corporation (KMC) is about to initiate a survey encompassing all categories of properties to expedite and streamline the recovery of municipal utility tax (MUT) in the metropolis.

Mayor of Karachi Waseem Akhtar talking to APP said that the KMC is faced with a budgetary deficit of Rs8 billion. However, it does not only expect urgent support from the provincial and federal governments, but is also equally committed to raising funds on a self-help basis.

Stressing the importance of the job, he said the current recovery rate of the only tax imposed by the KMC, the remaining being fees, is pathetically low.

“KMC is presently collecting on an average Rs15 million to Rs20 million as MUT against the envisaged Rs250m to Rs300m per month,” said Mr Akhtar.

The massive population flow to Karachi during the past decade and with the emergence of new businesses and habitat, there is a need for a fresh survey to assess the numbers as well as value of properties located in the metropolis.

“This is important as the surge has also enhanced manifold the demand for civic amenities and facilities that again require massive funds.”

The properties to be covered were said to range from amenity plots to industrial, residential and commercial plots.

Senior finance officer of the KMC Khalid Mehmood said that the KMC, as per existing estimates, can easily collect Rs600m to Rs800m under the head of MUT.

“However, since nothing can be done in a vacuum, the KMC has adopted a pragmatic appro­ach and hired the services of a reputable and equally credible organisation to conduct an elaborate survey,” he said.

Mr Akhtar agreed that revenue collection in Karachi was in itself a major challenge and for that purpose, the KMC was therefore compelled to adopt measures as attachment of property and arrest of non-payers.

This, he said, is being complemented with the capacity building of KMC staffers ensuring quality service delivery to citizens.

“We have to go for a carrot and stick policy as our budget is already exposed to a deficit of Rs8 billion which leaves little space to be lenient,” said the mayor.

Responding to a query, Mr Akhtar said funds are urgently needed to address the issue of backlog as no substantial work could be done, in particular garbage disposal that has accumulated to severe proportions due to inadequate handling for more than five years.

“There is no exaggeration in the fact that Karachi generates 12,000 tonnes of garbage daily while no more than 4,000 tonnes can be cleared, turning several parts of Karachi into garbage heaps and exposing people to serious health risks,” said the mayor.

The Sindh local government department, through the Sindh Solid Waste Mana­gement Board, has only recently hired the services of a Chinese company for garbage disposal in East and South districts of Karachi. The scheme is, however, yet to be functional.

Removing encroachments

Aseeem Akhtar said the removal of encroachment built on some 30 different drains, repair of 33 major thoroughfares encompassing 8,000 kilometres, and maintenance of 37 parks are all the responsibility of the KMC, which it is trying to realise with the limited resources at its disposal.

In its efforts to generate resources, he said, the KMC is engaged in setting right charged parking, being done haphazardly, and also streamlining its parks and amenity plots.

“Smart parking is being done at the KMC-managed sites while proper and judicious use of open space, parking grounds and parks are also ensured to generate revenue, as well as providing much-needed recreational facilities to the people,” he elaborated.

He added that early availability of desalination plants for the growing and expanding city is a dire need.

“We need targeted development in Karachi,” he said, and sought the support of the federal government for such schemes.

Loans and assistance cannot be procured from international agencies, institutions and other countries without guarantees provided by the federal government, said Mr Akhtar. He also mentioned that the provincial government will also have to play a role in that regard.

He appreciated that the federal government has provided much needed assistance for the ambitious green bus service that is currently under construction in the metropolis.

This, with the renewal of the circular railway project in Karachi, would help the issue of public transportation. However, the steady influx into Karachi is a fact that cannot be overlooked.

“We have to ensure that development in every context is complemented on the basis of population growth,” he said.

In reply to a question, he said essential revenue generation components of the KMC ranging from water and sewerage board, solid waste management to transport and collection of local taxes have been taken away after amendments to the provincial local bodies act.

While the management of fire brigade department, KMC hospitals, charged parking, zoo management, cleaning of major rain drains coupled with infrastructure development in selected areas have been placed under KMC’s purview.

“Despite this scenario, we are trying to streamline the situation with the available resources,” said Akhtar, mentioning that the KMC also have to meet the liabilities related to salary and pension of its employees.

“I have been repeatedly informing the concerned quarters about the deficit the KMC is exposed to and which is hampering its performance,” he said.

Akhtar regretted that devolution of power under the 18th amendment to the constitution.

Published in Dawn February 6th, 2017