The notification issued by the Sindh government could lead to a significant increase in water bills for residential, commercial and industrial customers, with forecasts suggesting an increase of up to 800%. Agricultural consumers, on the other hand, could face a doubling of Abiana fees (water tax). This sharp escalation in water bills represents the first significant rate adjustment in more than 25 years, dating back to 1999.
The Sindh Irrigation and Drainage Authority (SIDA) has directed the directors of its three area water authorities in a letter dated March 18 to expeditiously implement the revised water tax rates for irrigation and non-irrigation purposes. These boards monitor water distribution to agricultural consumers as well as to entities such as the Water and Sanitation Agency (WASA) in Hyderabad, municipal corporations and the Public Health Engineering Department in various districts of Sindh.According to SIDA spokesman Hizbullah Mangrio, the agency currently charges 0.50 rupees per 1,000 gallons from government entities that supply water to private consumers, while commercial and industrial consumers pay 1 rupee per 1,000 gallons. However, under the proposed tariff adjustments, residential consumers would be charged a rate of Rs 4 per 1,000 gallons while commercial and industrial consumers would be charged a rate of Rs 8 per 1,000 gallons.
The increase was approved during a cabinet meeting of the interim provincial government on February 20 and subsequently formalized through a notification from the Sindh Irrigation Minister on March 6. All commissioners, deputy commissioners, irrigation and SIDA departments have been directed to immediately enforce the new tariffs.Likewise, Abiana production per hectare for crops is expected to increase by 100%. In various canal control areas, rice farmers can expect fees ranging from Rs 127 to Rs 355 per hectare, while cotton farmers can expect fees ranging from Rs 84 to Rs 372. Sugarcane farmers are subject to tax rates between Rs 240 and 727, wheat farmers between Rs 79 and 213 and fruit farmers between Rs 133 and 568. Growers who grow other crops will also see a doubling in abiana costs.