ISLAMABAD: The Federal Board of Revenue (FBR) will issue increased values of immovable properties from July 1, 2023. The FBR has started the process of the updation of valuation tables of properties across Pakistan in consultation with the provincial authorities.
In this connection, the FBR has issued a notification, on Saturday, for constitution of the committees for the valuation of the immovable properties including new housing schemes, residential and commercial projects.
The FBR has also issued instructions to the field formations to coordinate with the respective district administrations for finalisation of the valuation tables of the immovable properties.
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The FBR has asked the senior members Board of Revenues, Sindh, Balochistan, Punjab and Khyber-Pakhtunkhwa, Gilgit-Baltistan with the request that instructions may be communicated to the Divisional heads/District heads for nomination of representatives of the Board of Revenue for consultation/consideration with the teams constituted by the chief commissioners of Regional Tax Offices.
According to the FBR, Regional Tax Offices (RTOs) should initiate the process to update the existing valuation tables of immovable properties already notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001.
The terms of reference (TORs) of the committees shall be as under: (i) Updating the rates already notified in valuation tables of immovable properties by the Board, pointing out any under/over valuation.
(ii) Recommendation of rates for areas/cities in respect of which fair market values have not previously been determined by the Board e.g. new housing schemes, residential and commercial projects (apartments). Keeping in view the availability of market rates, if these are available, the same may be included in the draft valuation tables.
(iii) For the purpose of uniformity “Square Yard” should be adopted as unit of measurement.
(iv) Consultation with Real Estate Association of the particular area or any of the stakeholders who should come up with his grievance through the said area association.
(v) The Court/Federal Tax Ombudsman (FTO) directions/recommendations on the existing valuation may be taken into consideration for new valuation.
It is also to be noted that the FBR is presently pursuing the agenda of taxation reforms namely Pakistan Raises Revenue Project (PRRP) under the auspices of World Bank. One of the most significant components of the project aims at harmonisation of valuation of immovable properties between FBR and the provincial governments/districts.
In order to reduce the anomalies, it is also advisable to coordinate with the respective district administrations while finalising the valuation tables as desired by the Board.
The committee may co-opt an Officer of Inland Revenue or any other person for carrying out survey/field visit for the purposes mentioned.
Secretary (Rules and SR0s), Inland Revenue Policy Wing, FBR shall act as focal person/coordinator.
Copyright Business Recorder, 2023