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MCI has been given control of collecting property tax in Islamabad from 2021

Islamabad—The Municipal Corporation Islamabad was bestowed sole responsibility of collecting property tax in both the urban and rural areas of Islamabad. This decision was taken by Justice Akhtar Kayani of the Islamabad High Court.

The election of the Mayor of Islamabad is said to be held on the 28th of December 2020. As of yet, the CDA/MCI officers are already under pressure to issue property tax notices to people of influence residing in the rural areas of Islamabad. It is for this reason that the IHC was moved to take the decision of putting MCI in charge of property tax collection.

The municipal authority is set to collect tax dues from all the sectors, housing societies, villages, and model villages in the federal capital.

It has come to the attention of related government bodies that numerous housing societies are evading property tax-paying neither CDA nor the Islamabad Capital Territory administration. Thus, it is easy to predict that the MCI is likely to face quite a few hurdles in its mission to collect property taxes.

Moreover, the Islamabad High Court has prohibited CDA from the collection of property tax as it saw it best that this responsibility lies with one municipal authority. This decision is in keeping with the ICT Local Government Act of 2015.

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Additional Responsibilities for MCI

Additional Responsibilities for MCI

In addition to having to collect property tax from these areas, the MCI has seen an increase in responsibilities in that it is to redefine the property tax rates according to different localities. The same percent of property tax cannot be levied in urban and rural areas alike.

This is a tall order for MCI especially since the Islamabad High Court has ordered the organization to prepare the appropriate tax orders and deal with objections from the public by June 2021. Moreover, the MCI will be responsible for the provision of basic utilities to union councils. These utility services include water, sanitation, gas, and electricity as well as the upkeep of infrastructure such as roads.

However, this will be in effect once the Municipal Corporation Islamabad submits the property tax notice. For now, the property tax will be charged at the current rates, to be collected by the MCI instead of CDA.

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