ISLAMABAD: The Federal Board of Revenue (FBR) has decided to hire top State Bank of Pakistan (SBP) property valuation specialists to conduct proper property assessments.
The SBP specialists will hold significant conversations with important stakeholders like as real estate brokers and town developers, according to a statement released by the revenue board on Tuesday.
The project was prompted by a number of complaints received by the FBR from various sources, alleging that property assessments were above market value. The FBR emphasized in the statement that the newly notified property assessments were finalised following thorough diligence and consultation with its field formations.
The upward increase in valuations across the country was intended to bring property values closer to market pricing, as is customary around the world. The message went on to say, “This intense workout is reasonably excellent.”
This consultation procedure will examine each case individually, making any required recommendations to correct any distortions and bring property values closer to market pricing, if any exist.
Meanwhile, the FBR has put the new property valuations on hold until January 16, 2022, after receiving complaints from around the country regarding unusually high property rates as a result of the newly notified valuations.
The FBR released guidelines about the procedure for reviewing and rationalizing irregularities in property rates in an office memorandum on Tuesday. “Wherever overvaluation or undervaluation was pointed out by a stakeholder,” the statement stated, “it has been determined to examine and reconsider the notified valuation tables.”
It is recommended that all chief commissioners of inland revenue (CCIRs) form valuation review committees (VRCs) and inform them by December 10, 2021.
“Any stakeholder with concerns regarding valuations may file a complaint with the VRC by December 15, 2021.”
The chief commissioners would participate in meaningful consultation with stakeholders and engage approved valuers of the State Bank of Pakistan to determine values, which could be higher or lower than the recently declared valuations.
According to Section 68(4) of the Income Tax Ordinance 2001, the FBR has the jurisdiction to evaluate fair market values of immovable properties. (With a little help from the APP)
