KMC 'Exit Tax' sparks Eid market outcry in metropolis

Buyers term 'forced collection' double taxation; officials defend levy as lawful

KARACHI:

People purchasing sacrificial animals for Eidul Azha are facing a new ordeal, as the Karachi Metropolitan Corporation (KMC) has begun collecting a "municipal services tax" at cattle market exit points, allegedly through coercive means.

According to reports, KMC staff have set up checkpoints at the exits of various cattle markets and are not allowing vehicles carrying sacrificial animals to leave unless the tax is paid. Buyers are being charged Rs300 for small animals and Rs600 for large animals.

A senior KMC official, requesting anonymity, termed the move unjustified, saying the civic body is already collecting Municipal Utility Charges and Tax (MUCT) through electricity bills on a monthly basis. "When a tax is already being recovered, there is no justification for charging it again," the official said, questioning the legality of the practice.

He further pointed out that the KMC is not responsible for cleanliness operations in the metropolis, as these fall under the Sindh Solid Waste Management Board, while MUCT is meant for infrastructure development and maintenance. "The veterinary department is neither ensuring cleanliness at cattle markets nor carrying out vaccination of animals. It is unclear what service this tax is being charged for," he added.

However, a KMC spokesperson defended the move, stating that the municipal services tax has been duly approved by the KMC council and is being collected only at markets established by the corporation.

Contrary to this claim, a survey of The Express Tribune found that the tax is also being collected at the Northern Bypass cattle market, which falls outside KMC's jurisdiction.

Several people complained of being forced to pay the tax. Faizan Khan said he was stopped by KMC officials after purchasing a cow from the Northern Bypass market. "We were issued a Rs600 slip and told we could not proceed unless we paid. We are already paying municipal taxes in our electricity bills - this is nothing but extortion," he said.

Similar complaints were reported by Kashan Tariq at Bhains Colony and Muhammad Mazhar at Kamran Chowrangi cattle market, who were charged Rs600 and Rs300, respectively.

Kashan said that no such tax had been imposed in previous years. "As soon as the moon of Zil Hajj was sighted, KMC officials took positions at market exits and began collecting the tax from every buyer," he said.

People have urged the authorities to take notice of the situation and clarify the legal status of the tax, which many have described as an undue financial burden ahead of Eid.