IHC suspends CDA tax authority restoration, orders local elections

ISLAMABAD: The Islamabad High Court (IHC) on Saturday suspended a single bench’s verdict that had restored the Capital Development Authority’s (CDA) powers to collect property tax and directed that local government elections be held within 120 days.

A division bench comprising Justice Arbab Muhammad Tahir and Justice Inam Amin Minhas issued the suspension order while hearing an intra-court appeal challenging the earlier decision.

According to the written order, the petitioner’s counsel argued that the single bench’s ruling violated Supreme Court directives. The lawyer contended that under the Islamabad Capital Territory Local Government Act 2015, the power to impose taxes, fees, rates, and other charges rests with the local government through official notification, not with the CDA.

The petitioner further submitted that the original petition before the single bench did not mention local government elections, yet the court issued directions to hold them, which the counsel described as beyond the scope of the case and contrary to Supreme Court instructions.

The division bench, after considering the arguments, suspended the single bench’s judgment dated September 24 until a final decision on the appeal. The court also issued notices to all parties, directing them to submit written responses before the next hearing.