IHC nullifies 200pc raise in property tax

ISLAMABAD: Islamabad High Court (IHC) on Wednesday nullified the notification of 200 percent increase in property taxes in federal capital. The IHC directed the authorities to collect tax at previous level and also clarified that tax collection is duty of Metropolitan Corporation of Islamabad (MCI) instead of the Capital Development Authority (CDA). Earlier in last year, the court had suspended the notification after hearing a plea against the hike. The petition argued that MCI had made a 200 percent increase in the property tax in Islamabad while misusing its powers and asked the court to set aside the decision of the MCI regarding increase in the property tax.

The MCI approved the increase in property tax, making it applicable from July 1, 2019, but tensions between the MCI and CDA over who would control the revenue directorate responsible for collecting property tax meant that the distribution of property tax bills was delayed.