The Islamabad High Court has suspended the collection of property tax in Islamabad, granting interim relief to taxpayers challenging the levy imposed by the Metropolitan Corporation Islamabad.
The decision came during an initial hearing of a writ petition filed by Muhammad Munir Ahmed Chaudhary and Ahmed Hasan Rana, who argued that the tax was imposed without proper legal authority and violated existing local government and taxation laws.
The petitioners challenged a March 14, 2024 gazette notification as well as a property tax bill of Rs. 846,398 issued in April 2026, making the case a test matter for many property owners in the federal capital.
Their counsel contended that the tax was imposed without lawful backing under the Islamabad Capital Territory Local Government Act, 2015 and the Urban Immovable Property Tax Act, 1958, and further argued that it was issued without due process or proper assessment.
After hearing initial arguments, the court observed that the petitioners had raised serious legal questions requiring detailed examination and found that the balance of convenience favored granting interim relief. It therefore suspended the disputed tax bills until the next hearing.
The court issued notices to the Metropolitan Corporation Islamabad, the Capital Development Authority, and relevant federal authorities, and adjourned the case for four weeks. During this period, affected property owners will not be required to pay the contested tax until further orders.
