KMC eyes Rs1bn annual revenue from tax on hotels, marriage halls
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KARACHI: The Karachi Metropolitan Corporation (KMC) is preparing to impose a new tax on hotels, restaurants, guest houses, lodges, marriage halls, marquees, marriage lawns, Airbnb properties and wedding banquet facilities to generate Rs1 billion annually. If approved by the City Council, the ‘entertainment tax’ will be collected at the rate of one per cent of the total bill generated by hotels, marriage halls, etc. Officials said that the municipal authority intends to seek approval for the tax in its upcoming budget for the next financial year. In a public notice, the KMC Municipal Commissioner Abrar Jaffar has invited public feedback on the proposal, setting June 10 for a hearing on objections and suggestions at the corporation headquarters. Public hearing on proposed ‘Entertainment Tax’ set for Wednesday at KMC head office According to the public notice, the KMC’s tourism department is seeking to strengthen its financial position and improve public services. To achieve this, it said, the corporation plans to amend the existing tax gazette by introducing a new category titled “Entertainment Tax – City Tourism and Hospitality,” along with its corresponding bylaws. The notice stated that under the Sindh Local Government Act, 2013, KMC is authorised to impose taxes, rates, tolls and fees within its jurisdiction. The municipal body is now looking to boost its revenue collection through the proposed entertainment tax, which the officials say could become a significant source of income. “We are eyeing the generation of one billion rupees through the entertainment tax,” the KMC spokesman said in a response to a query about the estimated revenue expected through the newly proposed tax. The proposed tax would be the second major move by the KMC to expand its tax net after imposing MUCT in July 2024, which is collected through K-Electric (KE) bills every month, generating around Rs4bn in revenue annually from Karachiites. Karachi Mayor Barrister Murtaza Wahab has publicly s