SHC grants stay against collection of 'infrastructure tax': next hearing on November 3

The Sindh High Court (SHC) on Friday, through issuing a stay order to the City District Government Karachi (CDGK), barred it from collecting what the petitioner Ashraf Hussain, President of Pasban Karachi called it "illegal" public utility charges known as 'infrastructure tax'.
A division bench of SHC comprising Justice Gulzar Ahmed and Justice Irfan Saadat while issuing the stay order ordered Secretary, Local Government, Government of Sindh, CDGK, and Executive Director, Finance group of CDGK, to submit their comments in next hearing to be held on November 3.
Hussain, chief of Pasban Karachi, an NGO, who was represented by Advocate Abdul Waheed, had challenged the utility bill as "illegal and unconstitutional", contending that the citizens were already paying the utility bills under various heads, like income tax, property tax, fire and conservancy tax, development charges, professional tax etc.
The petitioner had made the Sindh Government and CDGK a party to the case. A.A.G Adnan representing the Sindh Government requested the court for more time to submit the comments while any legal advisor/ advocate from CDGK did not participate in the Friday's hearing.
The petitioner contended that the poverty stricken people who are already paying many utility bills of water, gas, electricity, telephone and others, the CDGK has sprinkled oil on the fire by imposing the a new tax which is already to be used to sustain the rapid development taking place in the city. It said the key aspect of the CDGK's new policy is that any real estate dealing, be it sale, purchase, or transfer, can not go ahead until the clearance of all outstanding dues of infrastructure tax.
It further said there had been a great hue and cry against the imposition of said tax by the city government both from the general public as well as the business community. The levy of the above tax is beyond the authority of the Sindh Government, uncalled for, unjust, unfair, in violation of fundamental rights of the people in as much as against principles of natural justice as also against public interest.
It said the unrest among the people of the city has been time and again brought to the notice of the respondent through publication as well as demonstration. It appears that the government has no mind to appreciate the situation and withdraw the tax.
The petitioner prayed to the court to declare the infrastructure tax imposed by CDGK illegal, unfair, unjust, in violation of fundamental rights of the people against the public interest and also against natural justice.
It was also prayed to the court to direct the respondents to withdraw the above tax immediately. The petitioner further prayed to the court to award cost of petition and grand any other relief which the honourable court deems fit and proper and in the interest of justice.