According to an FBR announcement, the Federal Board of Revenue (FBR) postponed the implementation of revised property assessment rates until January 16, 2022.
Taking note of several complaints received from various stakeholders across the country, including real estate agents and town developers, about extraordinary rises in property rates as a result of the recently-notified property valuation, the FBR issued detailed instructions on Tuesday evening, December 7, 2021, via an office memorandum (OM) on the procedure to be followed to review and rationalize the anomalies in property rates.
As a result, it has been determined to examine and reread the notified value tables whenever a stakeholder points out overvaluation or undervaluation. The instructions specify that all Chief Commissioners of Inland Revenue (CCIRs) must form Valuation Review Committees (VRCs) and inform them by December 10, 2021.
Any stakeholder with concerns regarding values may file a representation with the VRC by December 15, 2021. Chief Commissioners will conduct meaningful consultations with stakeholders and involve the SBP’s approved valuers to determine values, which may be higher or lower than the recently disclosed valuations.
FBR Aims to Make Immovable Property Valuation Rates More Accurate
Section 68(4) of the Income Tax Ordinance, 2001, empowers the FBR to establish the fair market value of the immovable property. As a result, the FBR released updated valuation tables of properties across 40 major cities in SRO No 1534-1572(I)/2021, dated 01.12.2021, to bring them closer to actual market prices. However, several objections have been received from various parties, including real estate brokers and housing organizations, indicating irregularities and aberrations in the newly-notified valuation tables.
Although the announced valuations were arrived at following a rigorous consultative procedure and have been mainly well-received, the chances of error cannot be ruled out, and the same cannot be treated as carved in stone.
The VRCs must decide on the submissions by January 10, 2022, and then submit them to the FBR for notice. All recommendations issued by VRCs on revaluations must be re-notified on January 15, 2022, and must take effect on January 16, 2022. Meanwhile, SRO No 1534-1572(I)/2021, dated 01.12.2021, is being kept in abeyance to allow registration of in-process transactions.