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LDA to Recover One-Time Commercialization Fee from Businesses

According to news reports, the Lahore High Court (LHC) reinstated the Lahore Development Authority’s (LDA) authority to levy and reclaim land conversion costs in Lahore.

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The LHC reversed the decision of the single-judge bench, permitting the LDA to levy taxes. The judgement by a single court declared that the LDA cannot collect or recover conversion costs on roads or portions of roads designated as commercial under List-A or otherwise converted for commercial use.

The petitions were filed in response to the LDA’s decision to impose a one-time conversion fee under the LDA Act and the 2014 regulations for using land for commercial activity, which was deemed unlawful due to the fact that people had been conducting business on their premises for an extended period of time while paying all commercial rates.

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Justice Shahid Waheed ruled on an intra-court appeal (ICA) filed by the LDA after its attorney, Amir Saeed Rawn, guaranteed that no action would be done to collect the commercialization fee until the appeal was heard.

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