The Rawalpindi Chamber of Commerce and Industry (RCCI) has termed the move by the Federal Board of Revenue (FBR) to increase valuation rates of immovable properties as grossly excessive and unacceptable.
“The FBR’s move of new market value for immovable property in 40 major cities is tantamount to stalling the country’s economy and suspending business activities”, RCCI President Nadeem Rauf said in a statement.
He said that the valuation rates have been increased by 100 percent to 600 percent through a Statutory Regulatory Order (SRO). He said that with the proposed increase in taxes and valuation, the registry of Rs. 500,000 will now go up to Rs. 2.5 million.
He lamented that the purchasing power of the common man has already run out due to high inflation and the move will make it impossible to run businesses. He said that RCCI has always called for devising policies in consultation with stakeholders.
Rauf further claimed that FBR’s move is also against the government’s ongoing Naya Pakistan Housing Project. He said that construction material has already become expensive and the prices of cement, bricks and sanitary material have also tripled in one year. With the new SRO, the construction industry will decline, he added.
Requesting the government to take immediate notice of the FBR’s decision, he said that the business community has already been hit hardest by the coronavirus pandemic.
The RCCI president further said that the FBR has taken this step to collect more taxes, however, the ground realities are different. According to the FBR’s own data, first-quarter revenues exceeded the target. In such a scenario, the imposition of new taxes is unrealistic, he said.