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KARACHI: The Sindh cabinet on Thursday allowed cantonment boards to collect property tax within their respective limits and transfer the collected revenue to the provincial government after deducting their two per cent service charges.

The cabinet took the decision in view of the Supreme Court’s April 23 order that had directed the provincial government to enact a law within three months to bring to end a controversy whether the provincial government or the cantonment boards in Karachi will assess and collect the urban property tax from residents of the cantonment areas.

After 18th Amendment, the federal government and cantonment boards do not have any competence, power and jurisdiction to levy, charge, impose and recover taxes on any immovable property including tax on the annual rental value of immoveable property.

Some cantonment residents had challenged the........

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