The High Court Division on Sunday stayed for three months collection of holding tax at increased rates by the Dhaka South City Corporation.
The court also directed the government to explain in four weeks why raising holding tax and the charges for cleaning and providing street lights would not be declared illegal.
A bench of Justice Tariq ul Hakim and Justice Md. Faruque (M. Faruque) issued the rule and stayed collection of holding tax and the charges at increased rates by the DSCC after hearing a public interest litigation writ petition filed by 104 house owners of the capital’s Khilgaon area.
Respondents, LGRD ministry secretary, Dhaka South City mayor, DSCC’s Chief Executive Officer were asked to reply to the rule in four weeks.
The court order came amid house-owners protests against holding tax hike after 29 years.
At a recent rally residents of Segunbagicha protested holding tax hike by over 600 percent.
Members of Segunbaghicha Society called the holding tax hike ‘illogical and arbitrary’.
Society members said that discrepancies in the holding tax hikes they found to be glaring for which owners were required to pay the tax at different rates for houses or apartments of the same size.
The City Corporations (Taxation) Rules 1986 require house and apartment owners to pay seven per cent of the value of their properties as holding tax.
Supreme Court lawyer Mocktadir Rahman appeared for petitioners while deputy attorney general Amatul Karim for the state.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Country