In a landmark decision, the Islamabad High Court (IHC) has invalidated the Municipal Corporation Islamabad’s (MCI) controversial 400% property tax increase. The court has mandated MCI to revert to the tax rates established before the 2019 hike.

The ruling came after a petition from the Islamabad Chamber of Commerce and Industry (ICCI) and other stakeholders, who challenged MCI’s unilateral tax escalation. This follows a similar victory in 2019 when ICCI successfully contested a 300% tax increase.

Justice Mohsin Akhtar Kiyani, presiding over the recent hearing, issued a stay order against the latest tax hike and demanded a timeline from the Election Commission of Pakistan (ECP) for the upcoming Local Bodies Elections. The ECP assured the court of elections on September 29, with a notification to follow within two weeks.

The ICCI Solicitor argued that the tax hike was excessive and violated Section 88 of the Islamabad Local Government Act, 2015. The court concurred, highlighting that the MCI Administrator had overstepped his authority.

On his part, the ICCI President Ahsan Zafar Bakhtawari hailed the verdict, describing it as a “cool breeze” for the business community and residents. He hoped that MCI would comply with the court’s decision and continue collecting taxes at the 2019 rates.

Bakhtawari reaffirmed ICCI’s commitment to safeguarding the interests of Islamabad’s business community and residents in future too.