The Federal Board of Revenue (FBR) has agreed to adjust the levels for valuing immovable property in major metropolitan areas and surrounding regions to achieve compliance with market values, while the timeframe for all fields units to submit updated values is today.
“The officials have indeed been ordered for assessment figures of immovable property under sub-section (4) of section 68 of the Income Tax Act 2001 in an official message to Chief Commissioners Regional Taxpayers Offices (RTOs) around the nation.”
The FBR’s existing valuation table is close to 60 to 70% of market rates so upward revision will help the FBR to bring it in line with the prevailing market rates,” a report media report stated.
At present, there are three different rates through which real estate can be valuated, including the market rate, the DC rate, and the notified rate by the FBR itself.
It may be mentioned here that a property in Pakistan, probably the only country with three types of property valuations, can be registered and owned at a value much lower than the market rate.
FBR officials were asked earlier this month to indicate any locations not covered by FBR notifications and to flag out any inconsistencies in the current valuation tables, if any existed.
The tariffs for immovable property will be updated, and the RTO will be held liable if any discrepancies in the tables are discovered.
FBR has created a mechanism to raise value rates, according to a storey by The News. The bureau would then be able to collect a larger amount of tax.
The decision to update values was made when the International Monetary Fund (IMF) urged the Board to conduct a new nationwide appraisal. According to reports, the Fund objected to the continuation of the previous valuation despite the fact that the sale and purchase price of immoveable properties had risen by several times since the Board began assessing the taxable value of immoveable assets alongside the DC rates in 2015-16. It had emphasised to the Board that a new valuation be completed before the commencement of policy level negotiations in Washington.