SC stops cantonment board from issuing property tax notices

ISLAMABAD: The Supreme Court of Pakistan has restrained the Cantonment Board from issuing property tax notices on abandoned properties, which are owned by the federal government.

The decision comes after the court suspended a ruling made by the Peshawar High Court (PHC), which had earlier allowed the imposition of property taxes on such properties.

A five-member bench, headed by Justice Aminuddin Khan, heard the case and deliberated on the legal aspects surrounding the taxation of abandoned properties. The counsel for the federal government, Hafiz Ehsan, argued that these properties fall under federal jurisdiction and cannot be subjected to property tax by the Cantonment Board.

“The Constitution is clear that no other institution, including the Cantonment Board, has the authority to impose taxes on property owned by the federal government,” said Hafiz Ehsan during the hearing.

He added that abandoned properties are the legal possession of the federal government, and thus, any attempt to tax them would violate constitutional principles.

Following the arguments, the Supreme Court decided to suspend the PHC’s earlier ruling and issued a notice to the Cantonment Board Peshawar, requesting a response on the matter.

The case has sparked a wider debate on the authority of local bodies and their jurisdiction over federal properties. Legal experts believe this decision could set a significant precedent in clarifying the boundaries of taxation powers between different levels of government.

The Supreme Court’s intervention has brought clarity to the issue, temporarily halting any property tax actions by the Cantonment Board on abandoned federal properties. The final resolution of the case will depend on further proceedings and deliberations in the coming weeks.