The Sindh government has instructed the Sindh Irrigation and Drainage Authority (SIDA) to re-evaluate the current water tax rates, which could potentially result in a significant 800% increase in these taxes.
If these proposed changes are implemented, it could lead to a substantial hike in water bills across various sectors, including residential, commercial, and industrial.
Some estimates suggest that the increase could be as high as 800%. Moreover, agricultural consumers might also experience a doubling of their Aabiana (water tax) charges. This would mark the first major adjustment in water tax rates in over 25 years, dating back to 1999.
In a letter dated March 18, SIDA has directed the directors of its three regional water boards to promptly implement the revised water tax rates for both irrigation and non-irrigation purposes.
These boards are responsible for water distribution to agricultural consumers and various entities, such as the Water and Sanitation Agency (WASA) in Hyderabad, local municipal bodies, and the Public Health Engineering Department across different districts of Sindh.
Hizbullah Mangrio, the spokesperson for SIDA, provided some insight into the current water tax rates. Currently, the agency charges government departments Rs0.50 per 1,000 gallons for supplying water to residential consumers, while commercial and industrial consumers are charged Rs1 per 1,000 gallons.
However, under the proposed adjustments, residential consumers could face an increased charge of Rs4 per 1,000 gallons, and commercial and industrial consumers could be subject to a higher rate of Rs8 per 1,000 gallons.
This potential increase in water tax rates has raised concerns among consumers and stakeholders alike, as it could have a significant impact on the cost of living and operations for businesses and industries in the region.
