LDA Allowed to Charge a One-Time Commercialization Fee from Businesses
The Lahore High Court (LHC) reinstated the Lahore Development Authority’s (LDA) jurisdiction over levying and retrieving land conversion costs on Tuesday (September 21).
The LHC overturned a single judge’s bench judgment, allowing the LDA to collect taxes. Therefore, LDA cannot collect or recover conversion costs on roads or parts of highways declared commercial under List-A, or otherwise converted for commercial use, according to the single-judge bench order.
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The petitions were filed in response to the LDA’s decision to impose a one-time conversion fee for using land for commercial activity under the LDA Act and the 2014 regulations, which was deemed unconstitutional because people had been conducting business on their premises for a long time while paying all commercial rates.
After the LDA’s legal counsel, Amir Saeed Rawn promised that they would not recover the commercialization fee until they decided on the appeal, Justice Shahid Waheed announced the ruling on an inner court appeal (ICA) filed by the LDA.