LHC dismisses property tax exemption pleas by private medical college, hospital

Profit by Pakistan Today reported that the Lahore High Court rejected two pleas lodged by a private medical college and its hospital, which had sought exemption from property tax. The court also imposed a Rs1 million penalty for delayed payment of the tax.

According to the ruling, a lessee cannot escape the levy simply because it occupies rather than owns the building. A 2024 change to the Punjab Finance Act places a lessee in possession on the same footing as an owner. The court also held that an unregistered lease agreement does not shield a taxpayer from its obligations, and that authorities may serve a payment notice on an occupant under a rental arrangement when the owner defaults.

The court found that the petitioner had repeatedly sidestepped lawful taxes and dues, relying on delay tactics instead. The Rs1 million fine can be recovered as arrears of land revenue, the court said.