ISLAMABAD: In a landmark ruling, the Islamabad High Court (IHC) struck down the controversial 400% hike in property tax by the Islamabad Municipal Corporation (MCI). The court ordered the MCI to revert to the tax rates set before the 2019 hike.
The decision came after a petition by the Islamabad Chamber of Commerce and Industry (ICCI) and other stakeholders challenging the MCI’s unilateral tax escalation. This follows a similar victory in 2019 when ICCI successfully challenged a 300% tax hike.
Justice Mohsin Akhtar Kiyani, presiding over a recent hearing, issued a stay order against the latest tax hike and demanded a timetable from the Election Commission of Pakistan (ECP) for the upcoming local body elections. The ECP assured the court of September 29 elections with a notification to follow within two weeks.
ICCI’s counsel argued that the tax hike was unreasonable and violated Section 88 of the Islamabad Local Government Act, 2015. The court agreed, stressing that the MCI administrator had exceeded his authority.
ICCI President Ahsan Zafar Bakhtawari hailed the verdict, describing it as a “cool breeze” for the business community and residents. He hoped that the MCI would comply with the court’s order and continue to collect taxes as per the rates of 2019. Bakhtawari reaffirmed ICCI’s commitment to protect the interests of the business community and the people of Islamabad in the future as well.
