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Govt likely to increase water tax by 800%

MM News Staff by MM News Staff
March 22, 2024
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The Sindh government has instructed the Sindh Irrigation and Drainage Authority (SIDA) to revise water tax rates, with expectations of an 800 percent increase in the tax.

As reported by Propaksitan, this instruction from the Sindh government could potentially result in a substantial surge in water bills across domestic, commercial, and industrial sectors, with projections indicating an increase of up to 800 percent.

Agricultural consumers may also face a doubling of Aabiana (water tax) charges. This significant escalation in water bills marks the first substantial adjustment in rates in over 25 years, dating back to 1999.

SIDA has directed the directors of its three area water boards, through a letter dated March 18, to promptly implement the revised water tax rates for both irrigation and non-irrigation purposes. These boards oversee water distribution to agricultural consumers as well as entities like the Water and Sanitation Agency (WASA) in Hyderabad, municipal bodies, and the Public Health Engineering Department across various districts of Sindh.

Hizbullah Mangrio, a spokesperson for SIDA, stated that the agency currently levies Rs0.50 per 1,000 gallons from government departments supplying water to residential consumers, while commercial and industrial consumers pay Rs1 per 1,000 gallons. However, under the proposed tariff adjustments, residential consumers would be subjected to a charge of Rs4 per 1,000 gallons, while commercial and industrial consumers would face a rate of Rs8 per 1,000 gallons.

This increase was sanctioned during a cabinet meeting of the interim provincial government on February 20 and subsequently formalized through notification on March 6 by the Sindh Irrigation Secretary. All commissioners, deputy commissioners, the Irrigation department, and SIDA were instructed to enforce the new rates without delay.

Similarly, the per-acre abiana for crops is set to witness a 100 percent surge. In the command areas of different canals, rice farmers can expect charges ranging from Rs127 to Rs355 per acre, while cotton farmers will face fees between Rs84 to Rs372. Sugarcane growers will be subject to rates ranging from Rs240 to Rs727, wheat farmers from Rs79 to Rs213, and orchard farmers from Rs133 to Rs568. Growers cultivating various other crops will also encounter a doubling of abiana charges.

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