Islamabad: The Islamabad High Court (IHC) cancelled the notice to raise the federal capital’s property tax by 200%.
The High Court instructed the authorities to levy taxes at the previous level and clarified that the tax collection is the responsibility of the Metropolitan Corporation of Islamabad (MCI) and not 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.
MCI approved the property tax increase, which will apply from July 1, 2019, but the tension between MCI and CDA over who controls the revenue bureau responsible for collecting property taxes means that the distribution of property tax bills has been delayed.