SHC declares collection of property tax by cantonment boards as illegal

• The SHC heard the petition against the collection of property tax on behalf of the cantonment boards.
• The cantonment boards are not empowered to collect property taxes.
• The taxes collected by the cantonment boards can be withdrawn by the residents.

Karachi: The Sindh High Court (SHC) has declared the collection of property tax by cantonment boards as illegal, Bol News reported.

The SHC heard the petition against the collection of property tax on behalf of the cantonment boards, in which the lawyers of the cantonment boards appeared in court.

During the hearing, the lawyer for the petitioner said that after the 18^th Amendment, the cantonment boards are not empowered to collect property tax. On December 4, 2018, notices were given to various shops; tomorrow is the last day to submit property tax. On December 31, 2018, Cantonment issued a demand notice. Cantonment Board started pressing for collection of property tax in January 2019. Cantonment Board cannot collect property tax.

The counsel for the petitioner said that property tax cannot be collected under Article 142 of the Constitution. Concurrent List and Fourth Schedule were abolished after the 18^th Amendment. Cantonment Boards had the power to levy toll fees, property taxes, etc. after the 18^th Amendment.

After hearing the arguments of the parties, the court declared the collection of property tax by the cantonment boards illegal and said that under the 18^th Amendment, the taxes collected by the cantonment boards can be withdrawn by the residents.

However, the court suspended the execution of the decision for three days on the request of the lawyer for the cantonment boards.