The Sindh High Court has ruled that the collection of property tax by Cantonment Boards is illegal. The decision came during a hearing on a petition challenging the property tax collection by Cantonment Boards. Lawyers representing the Cantonment Boards appeared in court during the proceedings.
The petitioner’s lawyer argued that, following the 18th amendment, Cantonment Boards lack the authority to collect property tax. Notices for property tax submission were issued to various shops on December 4, 2018, with the last day for submission approaching. The Cantonment Board issued demand notices on December 31, 2018, and initiated property tax collection in January 2019. The petitioner contended that Cantonment Boards no longer possess the power to collect property tax due to the abolition of the Concurrent List and Fourth Schedule after the 18th Amendment.
The court, after considering arguments from both sides, declared the property tax collection by Cantonment Boards illegal. It asserted that residents can withdraw taxes collected by Cantonment Boards after the 18th amendment. However, the court, upon the request of the Cantonment Boards’ lawyer, suspended the execution of the decision for three days.
