MCI tax auction challenged

ISLAMABAD:

A constitutional petition has been filed in the Islamabad High Court (IHC) challenging the Municipal Corporation Islamabad's (MCI) auction of rights to collect various municipal taxes and fees.

The petition contends that the MCI has no legal authority to auction the collection of board tax, professional licence fees and other municipal taxes without statutory backing. It argues that the collection of taxes and fees must strictly comply with Section 88 of the Islamabad Capital Territory Local Government Act, 2015.

Advocate Faisal Mahmood filed the petition under Article 199 of the Constitution, making the federation, the Islamabad Chief Commissioner, the Deputy Commissioner and the Metropolitan Corporation Islamabad respondents. The petition challenges MCI's auction notice issued on July 10, 2026.

According to the petition, the auction notice is in clear violation of a January 16, 2023 judgment delivered by the IHC. It maintains that no tax or fee can be collected from the public without following the procedure prescribed by law.