KCCI dubs double property valuation illogical

KARACHI: Businessmen on Friday questioned the logic behind the implementation of federal and provincial laws for the evaluation of immovable properties.

“Implementing two rates to carry out evaluation of the same property for provincial and federal taxation purposes creates hurdles in accounting procedures, besides paving the way for corruption,” Younis Bashir, president of Karachi Chamber of Commerce and Industry (KCCI) said in a statement.

“There is absolutely no solution to deal with the issues emerging after the issuance of unrealistic property evaluation tables by the FBR. These tables must be withdrawn whereas the system of collectors’ value for registration be accepted for capital gain tax.”

Bashir said uncertainty prevails in the entire real estate and construction sector, terribly affecting the performance of this particular sector during the last couple of months. 

“It has been observed that transactions hardly took place during this period and the real estate and construction sector has come under tremendous pressure,” he added.

“If the situation remains unchanged the aftermaths will soon reflect in the key economic indicators as dozens of allied industries across Pakistan are likely to suffer badly due to poor decision-making.”

The business leader said the Karachi Chamber of Commerce and Industry decided to participate in a meeting held recently at the Federation House to only discuss the issues related to property valuation tables.

“In the larger interest of the country, we felt it necessary to take part in FPCCI’s (Federation of Pakistan Chambers of Commerce and Industry) meeting to only discuss the issue of property valuation as the real estate sector of entire Pakistan is terribly suffering due to unwise decisions being imposed without thinking about the consequences,” he added.

He further said the valuation tables made public by the FBR were on the higher side and totally unrealistic.

The tables were finalised without taking the stakeholders on board and they also contain numerous legal flaws, thus the entire business community completely rejects these tables and urges the authority to revert to the previous system, he added.