LHC upholds legality of property tax imposed by cantonment boards 

The Lahore High Court has upheld the legality of property tax imposed by cantonment boards under Presidential Order No 13 of 1979 read with the Cantonments Act, 1924, ruling that the levy falls within their lawful authority.

The decision came in a series of petitions challenging the vires of Section 3 of the 1979 order, which empowers cantonment boards to impose urban immovable property tax on the annual value of buildings and land within their jurisdiction.

The court held that the levy and collection of the tax operate within the constitutional framework, ensuring fiscal continuity, and found no illegality or constitutional violation in the actions of the cantonment boards.

It declared Section 3(1)(a) of the Cantonments (Urban Immovable Property Tax and Entertainments Duty) Order, 1979 to be valid, constitutional and intra vires the Constitution.

The court further observed that Presidential Order No 13 of 1979 functions in alignment with the existing statutory framework and does not introduce any independent or unconstitutional levy. Instead, it regulates taxation within cantonment areas by excluding the application of provincial property tax laws and reaffirming the authority of cantonment boards under federal legislation.

Addressing arguments related to the 18th Amendment, the court ruled that the claim that the 1979 order stood impliedly repealed was not legally sustainable.

It noted that the order remains in force in the absence of any express repeal or amendment by the competent legislature, in line with Article 270-A(3) and its relevant clauses.