ISLAMABAD: The Senate Standing Committee on Finance, Friday, directed the Federal Board of Revenue (FBR) that valuation of immovable property should be linked with the financial year with increase to mitigate inflationary impact.
The issue of valuation of immovable properties came under discussion at the committee meeting held here on Friday.
Regarding the review of valuation of immovable property, the Real Estates Consultants Association (RECA), DHA Islamabad–Rawalpindi were of the view that this move would stifle the real estate business in Pakistan. It asserted that nowhere in the world can two bodies of the government determine the value of a single property.
The FBR asserted that this move was essential in wake of the fact that real property value is not declared. The Committee after listening to both sides directed that valuation of immovable property may be linked with the Financial Year with increase to mitigate inflationary impact. It was asserted that the Deputy Commissioner of the area must be involved in the process.
FBR ready to revise downward values of immovable properties
The Committee took up public petitions regarding registration of furniture shops as tier-1 retailers under the Sales Tax Act, 1990 and review of valuation of immovable property. The complainants asserted that reforms such as these would surely affect business and growth adversely.
Members of the Pakistan Furniture Association pointed out that it had requested the government to remove the condition of covered area, it however, enhanced the covered area from 1,000 Sq ft to 2,000 Sq ft.
As a result of which some shops have been excluded from the tax zone and some have been taxed heavily. The Furniture Association stressed that it was imperative that furniture shops have vast display areas and therefore, huge space is a prerequisite.
Since furniture shops have dividers and sections to look like separate shops instead of one, the need of such restrictions was questioned. Members of the Committee asserted that the government must take measures to ensure that SMEs thrive rather than stifling its growth. Directions were given to the FBR to sit together with members of the Pakistan Furniture Association and sort matters, after which the issue will be taken up by the Committee at a later date.
While discussing the Securities and Exchange Commission of Pakistan (Amendment) Bill, 2022; the Committee was briefed about its salient features that would lead to major reforms in the Commission.
The Committee was informed that the bill sought to enhance transparency in appointments and strengthen the code of conduct. It would provide clarity in roles and ensure representation of Balochistan and Khyber-Pakhtunkhwa. The bill will be discussed in greater detail in the next meeting.
Copyright Business Recorder, 2022
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