Islamabad High Court (IHC) has ordered the federal government to dissolve Capital Development Authority (CDA). In a written judgment, justice Mohsin Akhtar Kayani gave that CDA has no legal authority to impose taxes on taxes.
The court stated that if a person or institution is indicted by CDA under the names of “direct access” or “right to road”, such amounts must be repaid. The federal government has been instructed to begin and end the process of dissolving CDA.
Justice Kayani also gave up that after dissolution all powers and assets on CDA should be transferred to Metropolitan Corporation. The rights of Islamabad’s citizens must be protected under the law.
The decision came in response to a petition filed by the Tijji Housing Society and its residents. In the verdict, the Court Cut CDA’s SRO (statutory legislative order) dated June 9, 2015 regarding the right to road and access fees. All actions taken by CDA during this SRO were declared illegal and the court ordered any money collected under it must be repaid.
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The judgment noted that the CDA Regulation was initially adopted for the establishment of the federal government and for the execution of development work. However, the regulation has lost its practical relevance with new legislation and government structures in place.
The court concluded that the purpose of establishing CDA has now been met and that the government should continue with its resolution. It also instructed the administration of Islamabad to remain transparent and liable after the transfer transfer.
In addition, the verdict stated that all administrative, regulatory and municipal functions of Islamabad fall under the local government law, which provides governance through elected representatives. According to this law, taxes cannot be imposed without the approval of the local government. Therefore, CDA has no legal authority to impose taxes on taxes.
It is worth noting that CDA had introduced the right to access taxes on petrol pumps and CNG stations, and direct access taxes on private housing communities with roads connecting to main roads, all of which were contested in High Court.
