Karachi: The Sindh High Court declared the collection of property tax by Cantonment Boards as illegal.
Petitions against the collection of property tax by Cantonment Boards were heard in the High Court. Counsel for the petitioner took the stand that after the 18th Amendment the Cantonment Boards have no power to levy property tax. After the 18th Amendment, property tax can be collected by the local government.
The counsel said that Cantonment Boards should be restrained from collecting property tax. On December 31, 2018, the demand notice was issued by the Cantonment. On December 4, 2018, notices were given to various shops that tomorrow is the last day to submit property tax. The Cantonment Board started pushing for collection of property tax in January 2019 as Cantonment Board cannot collect property tax after the 18th Amendment.
He said that after the 18th Amendment, Concurrent List and Fourth Schedule were abolished. After the 18th Amendment, the Cantonment Boards power to levy toll fees, property tax etc. was abolished.
The lawyer of the Cantonment Board stated that we have to approach the Supreme Court against the decision of the Sindh High Court, so we should be given respite.
The Court declared the collection of property tax by the Cantonment Boards illegal and remarked that after the 18th Amendment the taxes collected by the Cantonment Boards can be withdrawn by the residents. The court suspended the decision for 30 days on the request of the lawyer of the Cantonment Boards.
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