The Islamabad High Court (IHC) on Wednesday suspended a single-judge ruling that had annulled the recent property tax hike and directed the holding of local government elections in the federal capital.

A two-member division bench, comprising Justice Arbab Mohammad Tahir and Justice Raja Inaam Ameen Minhas, issued the interim order while hearing an intra-court appeal filed by the Metropolitan Corporation Islamabad (MCI) through its counsel, Advocate Kashif Ali Malik.

The appeal, filed under Section 3 of the Law Reforms Ordinance, 1972, challenged the earlier judgement that had declared the property tax notification “without lawful authority” and instructed the Election Commission of Pakistan (ECP) to immediately conduct local government polls in Islamabad.

In its September 24 verdict, the single-judge bench had ruled that the MCI administrator could not exercise the powers reserved for an elected local government, including the authority to impose or revise taxes.

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After preliminary arguments, the division bench suspended the single bench’s order and issued notices to the respondents, including petitioner Mohammad Anwar Mughal, the Capital Development Authority (CDA), and the Federation of Pakistan, seeking their responses.

The court noted that the case raised important questions regarding the extent of administrative powers during the interim period between the dissolution and reconstitution of local governments. Further hearing was adjourned.

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