200pc Increased Property Tax Collected by Public in Islamabad – The IHC had declared the 200pc increase in property tax void observing: “The notification dated 17.12.2018 is illegal and void as no taxes proposals were issued nor even any objection were invited in terms of Section 88(4) of the ICT Local Government Act, 2015 neither public hearings were given before the imposition of levy of the property tax in Islamabad.”
The Municipal Corporation of Islamabad (MCI) is collecting 200pc increased property tax in contradiction to a court decision and without legal backing.
Justice Mohsin Akhtar Kayani
Islamabad High Court (IHC) Justice Mohsin Akhtar Kayani in December last year set aside the notification of 200pc increase in property tax in the federal capital and directed the MCI to go for a public hearing before notifying any hike in the property tax.
Both the CDA and MCI filed appeals which are still pending before a two-member division bench of the IHC. The MCI, however, started collecting the enhanced tax without getting the law approved in accordance with the direction of the IHC.
Tax transferred to CDA
The collected tax is being transferred to the CDA account. On inquiring, CDA spokesman said the MCI was collecting the tax under section 132 of the LG Act and transferring the amount to the CDA as debt servicing.
According to him, the CDA lent Rs20 billion to the MCI since the latter had no funds to disburse salaries to its employees and to render municipal services. Subsequently, the CDA is not collecting taxes but retrieving the loan from the MCI, he said.
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