Property Tax
KARACHI: In a groundbreaking ruling on Thursday, the Sindh High Court (SHC) declared the collection of property tax by cantonment boards as illegal, marking a significant shift in jurisdiction. The court, however, granted a 30-day suspension of the decision at the request of the cantonment boards’ lawyer.
Petitions challenging this practice argued that, post the 18th Constitutional Amendment, cantonment boards no longer held the authority to levy and collect property tax, a jurisdiction now vested in local governments. The petitioner’s counsel highlighted that, following the devolution of powers to the provinces, cantonment boards should cease collecting property tax.
The court, recognizing the abolition of the Concurrent List from the Fourth Schedule after the 18th amendment, unequivocally declared the property tax collection by cantonment boards as illegal. It further mandated the return of taxes collected by the boards post-18th amendment to the residents.
Despite this landmark decision, the cantonment boards’ counsel expressed an intent to challenge the ruling in the Supreme Court, seeking respite. The petitioner’s counsel reiterated that, post the 18th amendment, cantonment boards should adhere to the new jurisdiction, emphasizing the authority now vested in local governments.
In a related development, the Sindh High Court issued notices to the mayor of Karachi and chairmen of Town Municipal Corporations in response to a petition challenging tax collection on cattle brought into the city. The petitioner raised concerns about the local government allowing animals from other areas to enter without vaccination, posing a health risk to citizens.
Additionally, the court ordered the continuation of the judicial inquiry into the Sakrand Mari Jalbani case, restricting the magistrate from passing judgment on the police C-class report. The case involves the killing of civilians, and the court emphasized the need for a clear and transparent investigation. The hearing is adjourned until January 15, with DIG Shaheed Benazirabad directed to continue the probe.
