Dhaka: The High Court on Tuesday stayed for six months the effectiveness of increased holding tax collection of Chittagong City Corporation (CCC).

Following a writ petition, an HC bench of Justice Quazi Reza-Ul Haque and Justice Mohammad Ullah also issued a rule asking the authorities concerned to reply as to why the collection of tax beyond the law should not be declared illegal.

The Local Government Division secretary, CCC mayor and its chief revenue officer were made respondents to the rule which is returnable in four weeks.

Barrister Jyotirmoy Barua, who stood for four petitioners, including joint convener of Chittagong Taxpayers Protection Parishad Kamal Uddin, said only Parliament has the authority to raise tax on citizens as per the section 83 of the Constitution.

However, the CCC has been collecting 17 percent holding tax since October last although the Building Construction Act allows 7 percent of the total revenue of a house, the lawyer said.