LHC Fines Private Medical College Rs1 Million Over Tax Delay

The Lahore High Court (LHC) has rejected two petitions filed by a private medical college and hospital seeking exemption from property tax, while also imposing a fine of Rs1 million over delays in paying the dues.

The court ruled that private medical colleges and hospitals cannot seek property tax exemption simply on the grounds that they occupy a building as tenants instead of owning it.

It noted that amendments introduced through the Punjab Finance Act 2024 also recognise a lessee in possession of a property as an owner for the purpose of property tax.

The court further clarified that taxpayers cannot escape their statutory obligations by relying on lease agreements that have not been registered.

It added that if a property's actual owner fails to clear the outstanding tax, the relevant authorities are authorised to serve a payment notice on the individual or entity occupying the premises under a rental or lease arrangement.

The court also observed that the petitioner had repeatedly failed to fulfil its lawful tax and payment obligations and had employed delaying tactics.

Consequently, the LHC imposed a penalty of Rs1 million, stating that the amount could be recovered in the same manner as outstanding land revenue.