KARACHI: In response to a petition filed by a group of residents against an unexpected surge in property tax, the Sindh High Court (SHC) has issued notices to the Defence Housing Authority (DHA), Cantonment Board Clifton (CBC), and other concerned parties.
The petitioners, led by Altaf Hussain Halli and 56 fellow residents of DHA and Clifton, approached the SHC to challenge a letter released on August 23, 2022, by the assistant director general of military land and cantonment boards in Rawalpindi.
As per the details, the petitioners argued that the letter introduced an unjustified, exorbitant tax that was improperly assessed.
They also contended that this tax imposition essentially amounts to extortion and is unjustly applied to DHA and CBC residents under the guise of house tax, misinterpreting certain provisions of the Cantonment Act 1922 and Chapter V of Cantonment Act 1924.
According to the petitioners, the authority to levy taxes, including property tax, rests solely with the parliament under Article 77 of the Constitution.
As a result, they asserted that the letter in question lacks legality and constitutionality.
The petitioners further stated that a public notice was issued in the media in October of the previous year, inviting objections in line with Section 66 of the law.
Taking advantage of this, the petitioners raised their objections and brought the matter into the spotlight.
Moreover, the petitioners named various entities including DHA, CBC, military estate office, V Corps Commander, defense secretary, Sindh chief secretary, excise & taxation secretary, and Cantonment Board Karachi as respondents.
They argued that since DHA lacks a military establishment, the jurisdiction and presence of CBC are invalid.
In addition, they also pointed out that properties within a province fall under the purview of provincial legislation according to Part I of the Federal Legislative List.
This indicates that the Sindh government holds the authority to assess and levy property tax, including the imposition of the Sindh Immovable Property Tax.
Additionally, the petitioners contended that the demand for house and conservancy tax is unfounded, as the amenities and services promised by DHA and CBC have not been provided.
They stressed that imposing a conservancy tax is unjustifiable since the Karachi Water & Sewerage Board is responsible for the water supply.
The petitioners’ counsel, Saadat Yar Khan, emphasized that his clients should not be subject to any form of tax, including water, sewerage, conservancy, and property tax, unless strictly by the law.
Questioning the jurisdiction of the CBC, the lawyer noted that the land seemingly acquired by DHA from the government of Sindh was originally intended for defense purposes.
The petitioners have requested the court to declare the impugned letter and the inflated property tax notices as illegal and unlawful.
Furthermore, they urged the court to prevent any coercive actions by the respondents, which could disrupt water supply and amenity services.
Following an initial hearing, a two-judge bench led by Justice Junaid Ghaffar has directed the respondents to submit their comments by September 6.
Source: The News
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