Govt, property tycoons narrow down differences

FBR refuses to bow down before pressure; final decision likely today

ISLAMABAD: The Federal Board of Revenue (FBR) and property tycoons on Friday night narrowed down their differences over revaluation of three categories of properties, including commercial, industrial and residential plots, in three major cities -- Karachi, Islamabad and Lahore.

The ranges of revaluation will be standing around 35 minimum to 400 to 500 percent maximum depending on location of posh areas such as plots located in the DHA and other renowned housing schemes, the re-evaluation will be jacked up by 400 to 500 percent in one go.

The FBR refused to bow down before any pressure and made it clear before the property dealers that they were not intended to create fear in the market but there should be a mechanism for bringing black money under the tax net. 

Both sides made hectic efforts to work out reconciled revaluation of property on the basis of per square yard on three different categories where valuation will be increased to bring it close to fair market value. 

The FBR will also unveil an amnesty scheme for regularising the past transactions of property by imposing fixed tax in the range of 2 to 3 percent. But the rate will depend on how much the property dealers allowed jacking up the revaluation rates and if they agree on higher rates, then the incentives on regularising the past transactions will be provided and if they give tough resistance then the FBR will propose higher rates for the amnesty scheme. 

Efforts were foiled during parleys where Peshawar based property dealers threatened to go on strike but the technical experts helping the FBR as well as FBR’s Member IR policy Rehmatullah Wazir played an important role in foiling such attempts and convinced the property and business tycoons to avoid a deadlock situation during the ongoing parleys.

“After striking an agreement, the government will announce a comprehensive package through a presidential ordinance to implement this crucial development without wasting anytime,” official sources confirmed to The News here on Friday night after holding parleys with the property dealers, the Federation Of Pakistan Chambers Of Commerce & Industry (FPCCI) and builders here at Board’s headquarters.

Special Assistant to PM on Revenues Haroon Akhtar Khan told The News after holding parleys with property dealers he was hopeful that both sides would strike an agreement of revaluation of property for three major cities on Saturday (today) as differences were narrowed down for evolving a consensus on this issue.

FPCCI President Abdul Rauf Alam told journalists after holding talks on Friday night that both sides would evolve consensus on lingering controversy. Abad represetative Arif Jeeva also supported his idea that differences would be resolved on Saturday.

They said that the special assistant to pm on revenues and FBR chairman would sit together with property dealers to finalize revaluation rates for all 21 cities especially for three major cities of the country.

In case the both sides manage to strike consensus on revaluation rates then Finance Minister Ishaq Dar will participate in parleys with the property tycoons and announce the package on Saturday evening.