Property tax: Civic agency serves notices to four universities

The HEC to write a summary to prime minister to exempt the universities of the tax

ISLAMABAD: The capital’s civic agency has served notices on some of the leading higher education institutes of the federal capital seeking payment of millions of rupees in long overdue property tax.

The civic body has recently sent notices to the National University of Science and Technology (Nust), Islamabad, International Islamic University Islamabad (IIUI), Quaid-i-Azam University (QAU), Allama Iqbal Open University (AIOU) and the National University of Modern Languages (NUML), sources told The Express Tribune.

The Capital Development Authority (CDA) has sought Rs291 million from IIUI against property tax that has accumulated over 14 years from 2002.

The IIUI was established in the 1980s and it sprawls over 704 acres of land. Over 18,000 students are currently enrolled at its main campus in H-11.

The IIUI Rector, Dr Masoom Yasinzai told The Express Tribune that the university had moved the Islamabad High Court (IHC) on the issue, and the case was still in the court.

Meanwhile, the Numl has been served a notice for payment of Rs99 million.

The matter, according to the university’s spokesperson, Muhammad Bilal, would be decided after consultation with other universities and the Higher Education Commission (HEC).



Similarly, the QAU has been served a notice of Rs107 million. The property tax has reportedly accumulated during the last 25 years from 1995 to 2016. A QAU official stated that whenever they asked the civic agency to demarcate their land they were served with tax notice.

Interestingly, the QAU has also moved the IHC.

The AIOU has also moved the IHC over the matter and it upheld the educational institute’s stance against the civic agency that the tax should not be charged which has been served Rs 121 million for 21 years. The CDA moved the Supreme Court against the high court ruling, which overruled the IHC decision.

On the basis of the decision against the AIOU, the civic agency has re-sent notices to all the universities demanding property tax.

The laid-back response from the CDA raises questions about the agency’s efficiency.

The CDA spokesperson, when contacted, told The Express Tribune that after the SC ruling, the universities were bound to pay their taxes.

To resolve the issue, the HEC had invited heads of the universities on Wednesday at its headquarters and it was decided it would write to Prime Minister to exempt varsities from the tax through a Statutory Regulatory Ordinance.

The situation has raised concerns that to meet the payment of the tax, universities would increase tuition fees.

Earlier, this year, the QAU was shut down by students protesting an increase in fee.

Meanwhile, the IIUI rector was of the view that the university would have to double the student fee to pay the tax.

“We are a not-for-profit organisation and we ought to write to the prime minister about the issue as we would ultimately [have to] raise the fee [to cover the cost of, which will create unrest among students, who come from all the different segments of society,” he said.

Published in The Express Tribune, March 17^th, 2016.