IHC suspends MCI property tax collection notice

ISLAMABAD: The Islamabad High Court has suspended a property tax collection notice issued by the Metropolitan Corporation Islamabad and sought replies from federal authorities as well as the civic agencies concerned.

Justice Khadim Hussain Soomro passed the order while hearing a petition filed by Ahmad Hassan Rana, who has challenged the legality of the property tax framework and the collection notice issued by the MCI on April 24, 2026.

According to the court's written order, notices were issued to the federation through the secretary interior and the secretary cabinet division, along with the MCI and the Capital Development Authority, directing them to submit responses to the petition.

The petition also challenges a Gazette notification issued in March 2024. Counsel for the petitioner argued before the court that the levy of property tax violated rules framed under the laws of 1958 and 2015. The petitioner further contended that the MCI did not have the legal authority to impose property tax on the basis of the annual rental or assessed value of buildings and land, and maintained that the impugned Gazette notification had been issued without lawful authority and should be declared void.