LAHORE: The Lahore High Court (LHC) has dismissed two petitions seeking exemption from property tax for a private medical college and hospital and imposed a fine or rupees one million fine for using delaying tactics in payment of the tax.
The court held that a private medical college and hospital cannot claim exemption from property tax merely on the grounds that they are not owners of the property but lessees.
The court observed that an amendment to the Punjab Finance Act 2024, a lessee in possession is also considered an owner for the purpose of property tax.
The court observed that a party could not avoid its legal tax liability by taking advantage of an unregistered lease agreement.
The court remarked that if the owner fails to pay the tax, the person using the property on rent or lease can also be served a payment notice by the tax authorities.
The court said that the petitioner had continuously avoided payment of lawful taxes and dues and had used delaying tactics to defer payment.
The court, therefore, imposed fine and observed that the same would be recovered as arrears of land revenue.
Copyright Business Recorder, 2026
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