FBR defers implementation of property valuation till January 16, 2022
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday deferred the implementation of new and revised valuations of immovable properties till January 16, 2021; following anomalies pointed out by the stakeholders.
The FBR on December 1, 2021 issued fresh and upward revised valuation tables for immovable properties located in 40 major cities of the country.
The revenue body decision to defer the implementation came after several complaints received by the FBR were pertaining to high valuation in the new tables.
The complaints were lodged by the stakeholders, including real estate agents and town developers, who pointed out an extraordinary rise in the property rates in the latest valuation tables.
The FBR issued detailed instructions to the tax offices on the procedure to be adopted to review the anomalies in the property rates and rationalise the same.
Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.
The FBR asked all the chief commissioners Inland Revenue (CCIRs) to constitute valuation review committees (VRCs), and notify them by December 10, 2021.
Any stakeholder having any reservation about the valuations may lodge a representation before VRC by December 15, 2021. The chief commissioners will undertake consultative process with the stakeholders and engage the State Bank of Pakistan (SBP) approved valuers for determination of values, which could either be more or less than the lately notified valuations.
To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.
However, the stakeholders highlighted certain objections, 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; therefore, 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 would decide upon the representations by January 10, 2022, and forward the same to the FBR for notification.
All recommendations made by the VRCs vis-à-vis revaluations would be re-notified on January 15, 2022, which would come into force on January 16, 2022.
In the meantime, SRO No 1534-1572(I)/2021 dated December 1, 2021 will be held in abeyance to allow registration of the in-process transactions.
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