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ISLAMABAD: The Islamabad High Court on Wednesday suspended the collection of property tax from residents of the federal capital, providing interim relief to taxpayers challenging the levy imposed by the Metropolitan Corporation Islamabad (MCI).
A single bench of the IHC issued the order during the first hearing of a writ petition filed by Muhammad Munir Ahmed Chaudhary and Ahmed Hasan Rana, who also appeared as counsel for petitioner No. 1.
The petitioners challenged Gazette Notification No. 404(1)-4/2024, dated March 14, 2024, and a subsequent property tax bill of Rs846,398 issued to them on April 24, 2026. The matter has now become a test case for thousands of property owners across the capital facing similar tax demands.
During the proceedings, counsel for the petitioners argued that the imposition of property tax through the impugned notification was in direct violation of the Islamabad Capital Territory Local Government Act, 2015, and the Urban Immovable Property Tax Act, 1958.
