SHC directs CM to decide conflict between two TMCs over taxes on mulching animals

The Sindh High Court (SHC) has directed the Sindh chief minster to decide the issue between the Gadap and Ibrahim Hyderi town municipal corporations (TMCs) for collecting taxes on mulching animals.

The direction came on a petition of the Gadap TMC that challenged the collection of taxes on mulching animals by the Ibrahim Hyderi TMC. A counsel for the petitioner submitted that a provincial local government commission entitled the petitioner to collect tax fees on mulching animals entering the city from outside, including the animals coming through the highways, whereas the Ibrahim Hyderi TMC could collect tax from animals retained in its jurisdiction or to which municipal services were provided.

The counsel submitted that despite the direction of the commission, officers of the Ibrahim Hyderi TMC attempted to intervene with the rights of collection of taxes on mulching animals by the petitioner.

The Gadap TMC filed a contempt of court application over violation of the previous court orders. Counsel for the alleged contemnors referred to the court Nazir’s report that stated that the disputed post was situated in Jamshoro where the Ibrahim Hyderi TMC was collecting taxes on mulching animals and the same was functional from July 2025 before the court’s order.

They said that the matter was referred to the CM for a decision and parties were directed to maintain status quo.

A division bench of the high court headed by Justice Mohammad Iqbal Kalhoro observed that the only evidence furnished in support of the contempt application was the Nazir’s report showing collection of taxes on mulching animals from the post created by the Ibrahim Hyderi TMC in Jamshoro.

The SHC observed that the Nazir’s report also suggested that before the status quo order passed by the court, these posts were already there. The high court observed that in case of any dispute between the two TMCs, the CM was the competent authority to decide the same and until the issue was decided by the CM, the issue of collection of taxes could not be decided.

The bench vacated the contempt notices and recalled its previous order directing the CM to decide the issue between the two TMCs within 30 days.