Karachi: The Sindh High Court (SHC) has ruled the collection of property tax by cantonment boards as illegal, according to Bol News.
The SHC considered a petition challenging the collection of property tax by cantonment boards, with the lawyers of the boards appearing during the hearing.
The petitioner’s lawyer argued that after the 18th Amendment, cantonment boards are not authorized to collect property tax.
Notices were issued to various shops on December 4, 2018, with the last day for submitting property tax being tomorrow.
On December 31, 2018, the Cantonment issued a demand notice, and the board began pressing for property tax collection in January 2019.
The counsel for the petitioner contended that property tax cannot be collected under Article 142 of the Constitution.
The Concurrent List and Fourth Schedule were abolished after the 18th Amendment, and cantonment boards lost the power to levy toll fees and property taxes.
After hearing the arguments, the court declared the collection of property tax by cantonment boards illegal, stating that residents can withdraw the taxes collected by the boards under the 18th Amendment.
However, the court suspended the execution of the decision for three days at the request of the lawyer for the cantonment boards.
