The Federal Board of Revenue (FBR) has held in abeyance new property valuation till January 16, 2022.
According to sources, To put full stop on the ongoing controversy over the decision to increase valuation rates for property, the Federal Board of Revenue (FBR) on Tuesday held in abeyance the new valuations for taxation until January 16 2022. In the response to the chaos due to rise in property rates and complaints from realty stakeholders. FBR has issued detailed instructions last evening through an Office Memorandum (OM) on the procedure to be approved to review the anomalies in the property rates and rationalize the same.
Accordingly, it has been decided to evaluate and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder. It has been stated in the instructions that all Chief Commissioners Inland Revenue (CCIRs) shall constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021. Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake a meaningful consultative process with the stakeholders and engage SBP’s approved valuers for the determination of values, which could be either more or less than the lately notified valuations.
It is pertinent to mention that the FBR is empowered to determine the fair market value of immovable properties in terms of Section 68(4) of the Income Tax Ordinance, 2001. Therefore, the FBR vide SRO No.1534-1572(I)/2021 issued new valuation tables of properties across 40 major cities intending to bring them closer to the actual market prices.
However, the FBR received certain objections from various stakeholders, including real estate agents and housing societies, highlighting anomalies and aberrations in the newly notified valuation tables. Although the notified valuations have been arrived at by the FBR Field Formations through a rigorous consultative process and wherefore have largely been well received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.
The VRCs will decide on the representations by January 10, 2022, and forward the same to the FBR for notification. All recommendations made by the VRCs on revaluations will be re-notified on January 15, 2022, which will come into force on January 16.
In the time being, SRO1534-1572(I)/2021 is held in abeyance to allow registration of in-process transactions, said the announcement.