LAHORE, Feb 27: The Lahore High Court on Friday reserved its judgment on writ petitions challenging the levy of property tax under the new method of the capital value of a property.

Around 450 tax payers had challenged the Punjab government's decision to replace the assessment of property tax on the basis of annual rental value of a property for which the Urban Immovable Property Act, 1958, was amended in October, 2001, to insert section 5-A for the assessment on the capital value of a property.

They contended that the new assessment method, for which the urban property was categorized on the basis of the expected annual rental value of a property, had increased the tax five to 10 times.

They pleaded that the new tax system was implemented by the Punjab Excise Department without affording them an opportunity to file objections and being heard in person as was prevalent under the old system. This, they contended, was in conflict with their fundamental rights.