The Islamabad High Court (IHC) has cancelled the Metropolitan Corporation Islamabad’s (MCI) January 23, 2024, notification, which had increased property taxes and sent notices to newly included areas.
Justice Mohsin Akhtar Kayani issued this verdict on September 25, 2025, after hearing petitions by Munir Chaudhry and Ahmed Hassan Rana.
The MCI attempted to raise property taxes and expand tax notices to new areas in the capital. The petitioners challenged the notification’s legality, leading the IHC to suspend the notices on June 4, 2024. The court questioned the MCI’s authority, especially since delays had postponed local government elections.
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The MCI admitted that the January 2024 notification was only a draft and was never published in the official gazette. Despite this, the court ruled the notification invalid, citing procedural errors and a lack of authority until elections take place.
In June, Justice Kayani also blocked the MCI from raising taxes until the local government elections are held. The petitions linked the tax hikes to the delays in these elections, highlighting the limited powers of the MCI without an elected local government.
This ruling protects Islamabad residents from sudden tax increases. It also emphasises the need for elected local leadership. The decision may expedite election timelines and impact future municipal policies.
