The Supreme Court of Pakistan (SC) has suspended a decision of the Peshawar High Court (PHC) and restrained the Cantonment Board from issuing property tax notices on the Evacuee Trust Property Board (ETPB) properties.
According to 24NewsHD TV, the SC’s constitutional bench, led by Justice Aminuddin Khan, heard the case and issued notices to the Peshawar Cantonment Board. The five-member bench took up the matter on Friday.
During the hearing, Hafiz Ehsan Khokhar, the counsel for the ETPB, argued that the properties of the Evacuee Trust are owned by the federal government.
Therefore, no cantonment board has the authority to impose property taxes on them.
He further contended that the Constitution clearly states that no institution other than the federal government can levy taxes on federal properties.
Following the proceedings, the court adjourned the hearing indefinitely.
In a related development last year, on March 19, the Lahore High Court (LHC) had issued a stay order restraining the Lahore Cantonment Board from collecting property tax.
The order was passed in response to a constitutional petition filed by Elite Marquee, which had received a tax notice amounting to Rs 3.9 million.
The petitioner’s counsel argued that the Cantonment Board lost its authority to impose and collect property taxes following the 18th Constitutional Amendment.
It was also noted that the Sindh High Court (SHC) had previously struck down similar taxation powers of cantonment boards.
Despite these constitutional limits and judicial rulings, the Lahore Cantonment Board continues to issue property tax notices.
The petitioner has urged the high court to declare the contonment board’s notices and taxation authority null and void.
Reporter: Amanat Gishkori