KARACHI: The Federal Board of Revenue (FBR) has suspended new property valuation till January 16 to review anomalies identified by key stakeholders, an official said on Tuesday.
“It has decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by the stakeholder including real estate agents and town developers,” the official said. “All chief commissioners Inland Revenue shall constitute valuation review committees (VRCs), and notify them by December 10, 2021.”
On Monday, a Senate’s Standing Committee on Finance and Revenue directed the FBR to revise the new valuation after consultation with the stakeholders within 15 days.
“Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021,” the spokesman said.
“Chief Commissioners will undertake a meaningful consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.”
The FBR has taken notice of a number of complaints received from all over the country from various stakeholders including about extraordinary rise in property rates resulting from the recently notified property valuation.
It has therefore issued detailed instructions on Tuesday through an Office Memorandum (OM) on the procedure to be adopted to review anomalies in the property rates and rationalize the same.
The FBR issued new valuation tables on December 1 of properties across 40 major cities with a view to bringing them closer to the actual market prices.
“Although, the notified valuations have been arrived at by 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 FBR said.
It added that the VRCs will decide upon the representations by January 10 and forward the same to FBR for notification. All recommendations made by VRCs vis-à-vis revaluations will be re-notified on January 15, which will come into effect from January 16.
“In the meantime, SRO No.1534-1572(I)/2021 dated 01.12.2021 [the new property valuation] are held in abeyance to allow registration of the in-process transactions,” the FBR added. Therefore, according to an FBR official, the property transactions happening till January 15 will fall under the previous FBR property valuation.