IHC stays MCI tax collection notice

The Islamabad High Court (IHC) on Wednesday suspended a property tax collection notice issued by the Metropolitan Corporation Islamabad (MCI) on April 24, 2026 and directed the relevant federal authorities to submit their responses in the matter.

The order was passed by Justice Khadim Hussain Soomro while hearing a petition filed by Ahmad Hassan Rana challenging the legality of the property tax regime and the collection notice issued by the MCI.

According to the court's written order, notices have been issued to the federation through the Secretary Interior and the Secretary Cabinet Division, as well as to the MCI and the Capital Development Authority (CDA), seeking their replies to the petition.

The petitioner has challenged both the March 2024 Gazette Notification and the property tax collection notice dated April 2026. Counsel for the petitioner argued that the imposition of property tax was in violation of the relevant rules framed under the laws of 1958 and 2015.

The petitioner further contended that the Metropolitan Corporation Islamabad lacks the legal authority to levy property tax on the basis of the annual rental or assessed value of buildings and land. It was argued before the court that the impugned Gazette Notification was issued without lawful authority and should therefore be declared void.