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FBR Responds to Calls of Suspending Revised Property Valuation Rates

The Federal Board of Revenue (FBR) has not suspended the property valuation rates of immovable properties recently issued for 40 cities of Pakistan, nor has it constituted any committee in this regard.

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Talking to Propakistani, an FBR spokesperson said the tax machinery did not revoke its recently issued SRO regarding the revised valuation of immovable properties.

It is worth mentioning here that the recent revision in the rates of property valuation by FBR triggered criticism from various stakeholders.

When contacted to share his viewpoint on the subject, former Finance Secretary, Abdul Wajid Rana, said it was as per the conditions set forth by the Financial Action Task Force (FATF) that the government had revised property valuation in various cities.

He explained that a lot of black money went into the real estate sector, and this was the only way the government could have a check on black money circulation in the real estate sector. He said there was a fine line between the district collectorate (DC) value and market value of properties when he managed the property valuation as Sindh’s Finance Secretary in 2011, as compared to the prevailing regulations and rates.

He revealed that FBR, as per the FATF conditions, initially started the practice of revising rates in 2017, adding that the property rates had been revised three times during the last four years. “However, with today’s valuation rates, the government will generate revenues in terms of capital gain tax, stamp duties, which in contrast with popular opinion, is a good decision on part of the government,” he opined.

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When asked that the All Pakistan Realtors Association (APRA) was calling this increase unrealistic and damaging to the real estate industry, Wajid Rana was of the view that some of the property evaluation rates in various cities were indeed unrealistic, and the tax machinery should consider concerns of relevant stakeholders.

Prior to the aforesaid developments, the Senate Standing Committee on Finance, Revenue, and Economic Affairs had recommended FBR to revoke the recently issued SRO regarding the revised valuation of immovable properties for 40 cities.

The FBR officials said the tax machinery was standing by its stance as a tax regulator and it looked forward to regulating the real estate ecosystem in accordance with current economic requirements.

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