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ISLAMABAD: The Islamabad High Court (IHC) has issued a detailed judgment on the property tax dispute in CDA, Municipal Corporation.

According to details, the Islamabad High Court has directed the federal government to set up a local government fund. A government fund should be established.

The decision said that the money received in the form of property tax and fees would be deposited in the local government fund, the report of the municipality would be responsible for providing electricity, water, gas, and road facilities.

The decision issued by the Islamabad High Court said that the property tax collected by the CDA after 2015 should also be transferred to the local government fund. The Auditor-General should conduct a special audit for the correct estimate of the tax collected by the CDA.

The court said in its decision that the municipal corporation should prepare a new tax proposal within six months and issue an advertisement. The tax should be determined after hearing public objections to the new proposal.

The apex court in its judgment said that the notification of tax collection by CDA for 2018 was illegal, adding that after the Local Government Act 2015, CDA did not have the power to collect the tax.

It may be recalled that on December 23, the Islamabad High Court, while approving the petitions against the increase in property tax, had declared the 200 percent increase in property tax null and void and ordered the Metropolitan Corporation to collect tax at the old rates.

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