ISLAMABAD: The Islamabad High Court (IHC) has suspended the collection of property tax from residents of the federal capital, delivering interim relief to taxpayers who had challenged the levy imposed by the Metropolitan Corporation Islamabad (MCI).
The order was issued by a single bench during the first hearing of a writ petition filed by Muhammad Munir Ahmed Chaudhary and Ahmed Hasan Rana, with the latter also appearing as counsel for the case.
The petition contests Gazette Notification No. 404(1)-4/2024, issued on March 14, 2024, as well as a subsequent property tax bill of Rs. 846,398, served on the petitioners on April 24, 2026. Given that thousands of property owners across Islamabad face similar demands, the case has emerged as a key test case with wide-reaching implications.
Counsel for the petitioners argued that the notification contravened the Islamabad Capital Territory Local Government Act, 2015, and the Urban Immovable Property Tax Act, 1958. They contended that MCI lacked the legal authority to impose such a tax and that the notification had been issued by an administrator rather than an elected local government body, as required by law.
It was further argued that the tax demand was arbitrary, lacking proper assessment and failing to provide taxpayers a hearing. The petitioners cited a relevant Supreme Court ruling to reinforce their position.
After hearing preliminary arguments, the court concluded that the petitioners had established a prima facie case, with the balance of convenience favouring the taxpayers. Consequently, notices were issued to MCI, its Directorate of Revenue, the Capital Development Authority, and federal authorities through the Interior and Cabinet divisions.
The bench suspended the disputed tax bills until the next hearing and adjourned proceedings for four weeks, meaning affected residents will not be required to make payments in the interim.
For more news on real estate and special reports, visit Chakor.
Sources:
Dedicated and detail-oriented SEO Content Writer, Real Estate Writer, and Research Analyst based in Islamabad, with proven expertise in developing accurate, valuable, and well-researched content. Skilled in analytical writing, market research, and reporting, with the ability to turn insights into clear, professional, and impactful content. Passionate about exploring new ideas, analyzing industry trends, and contributing to high-quality writing and research-driven projects.
