The Federal Board of Revenue (FBR) and provincial governments would jointly work out the new values of immovable properties to be notified from the next fiscal year.
The upward revised values of immovable properties in all major cities of the country would be applicable from July 1, 2023.
The FBR issued a notification on Saturday for the constitution of the committees for the valuation of the immovable properties. The task is to be completed by May 15, 2023, enabling FBR to notify new property valuation tables that would be effective from July 1, 2023.
Under the plan, Regional Tax Offices (RTOs) should initiate the process to update the existing valuation tables of immovable properties already notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001.
The terms of reference (TORs) of the committees will be as under:
(i) Updating the rates already notified in valuation tables of immovable properties by the Board, pointing out any under/overvaluation.
(ii) Recommendation of rates for areas/cities in respect of which fair market values have not previously been determined by the Board e.g. new housing schemes, residential and commercial projects (apartments). Keeping in view the availability of market rates, if these are available, the same may be included in the draft valuation tables.
(iii) For uniformity “Square Yard” should be adopted as the unit of measurement.
(iv) Consultation with the Real Estate Association of the particular area or any of the stakeholders who should come up with their grievance through the said area association.
(v) The directions/recommendations of Courts/Federal Tax Ombudsman (FTO) on the existing valuation may be taken into consideration for new valuation.