FBR Holds in Abeyance New Property Valuation till January 16, 2022
Federal Board of Revenue (FBR) has held in Abeyance New Property Valuation in Pakistan till January 16, 2022.
It took a decision taking cognizance of a number of complaints from across the country received from various stakeholders including real estate agents and town developers.
They had complained about the extraordinary rise in property rates resulting from the recently notified property valuation.
FBR has issued detailed instructions through an Office Memorandum (OM) on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.
Accordingly, FBR decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation stakeholders had pointed out.
It also stated in the instructions that all Chief Commissioners Inland Revenue (CCIRs) shall constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021.
Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021.
Chief Commissioners will undertake meaningful consultative processes with the stakeholders and engage SBP’s approved valuers for the determination of values, which could be either more or less than the lately notified valuations.
It is pertinent to mention that the Federal Board of Revenue (FBR) has powers to determine the fair market value of immovable properties in terms of section 68(4) of the Income Tax Ordinance, 2001.
Therefore, FBR vide SRO No.1534-1572(I)/2021, dated 01.12.2021 issued new valuation tables of properties across 40 major cities with a view to bringing them closer to the actual market prices.
However, it received certain objections from various stakeholders including real estate agents and housing societies. They had highlighted anomalies and aberrations in the newly notified valuation tables.
The FBR Field Formations arrived at notified valuations through a rigorous consultative process, yet it cannot rule out the possibility of error.
The VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification. It will re-notify all recommendations made by VRCs vis-à-vis revaluations on January 15, 2022, which shall come into force on January 16, 2022.
In the meantime, FBR has held SRO No.1534-1572(I)/2021 dated 01.12.2021 in abeyance to allow registration of the in-process transactions.
