By Sohail Sarfraz
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday held in abeyance the new property valuation rates till January 16, 2022, according to an announcement of the FBR.
Taking cognizance of a number of complaints from across the country received from various stakeholders including real estate agents and town developers about extraordinary rise in property rates resulting from the recently-notified property valuation, the FBR has issued detailed instructions this evening through an office memorandum (OM) on the procedure to be adopted to review the anomalies in the property rates and rationalise the same.
Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder. It has been 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 the VRC by December 15, 2021. Chief Commissioners will undertake meaningful consultative process with the stakeholders and engage the SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.
FBR ready to revise downward values of immovable properties
The FBR is empowered to determine fair market value of immovable properties in terms of section 68(4) of the Income Tax Ordinance, 2001. Therefore, the 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, certain objections from various stakeholders including real estate agents and housing societies have been received highlighting anomalies and aberrations in the newly-notified valuation tables.
Although, the notified valuations have arrived at the FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.
The VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification. All recommendations made by VRCs vis-à-vis revaluations shall be re-notified on January 15, 2022, which shall come into force on January 16, 2022. In the meantime, SRO No 1534-1572(I)/2021 dated 01.12.2021 are held in abeyance to allow registration of the in-process transactions.
This article was first published in Business Recorder on Dec 8, 2021.
