ISLAMABAD: Legal experts and tax advisers have sought an urgent clarification from the Federal Board of Revenue (FBR) to explain whether previous rebates are still allowed on immovable properties in Karachi under the new S.R.O.1724 (I)/2024.
In this regard, Kapadia Law Associates Karachi has written a letter to the FBR Chairman on the clarification of the valuation table of Karachi.
According to the communication to the FBR, reference has been made to S.R.O. 1724 (I)/2024 issued by the FBR.
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In the current notification issued on October 29, 2024 there are no such kind of rebates allowed as compare to previous notification. The FBR needs to clarify whether previous rebates are still allowed on additional storeyed of the residential bungalows/old constructions and old flats/apartments.
In earlier notification No. S.R.O.345(I)/2022, in which rebates were allowed in the following manner:-
i. Values in the above Table are in rupees.
ii. Value is per square yard of the covered area of ground floor plus covered area for the additional floors.
iii. Commercial property built up value is per square yard of the covered area of the ground floor plus covered area of the additional floors, if any.
iv. Built up industrial property value is per square yard of the entire plot area plus covered area of the plot per square foot. v. Value in respect of a residential building consisting of more than one storey shall be increased by 25% for each additional story i.e. value of each storey other than the ground floor shall be calculated @25% of the value of the ground floor.
vi. A property which does not appear to fall in any of the categories shall be deemed to fall in the adjacent lowest category of the Appendix.
vii. Whether the land has been granted for more than one purpose viz. residential, commercial and industrial, the valuation in such a case shall be the mean/average prescribed rate.
viii. A flat means the covered residential tenement having separate property nit number/sub-property unit number.
ix. In residential, multi storey building, additional storey shall be charged if it consists of bed room and bath room.
x. The rates for basements of built in commercial property in categories I, II, II and IV shall be Rs 13,500 per square yard.
xi. High Rises at Serial Number No. 44 of Appendix means a building with Storeys above ground plus five.
xii. The value of residential built up property (including basement and first floor) is allowed to be reduced according to the specified criteria.
xiii. The value of the built up property (Flats and Apartments) is allowed to reduce according to the given criteria.
xiv. The value of commercial built up property is allowed to be reduced according to the specified criteria.
xv. The value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10%.
xvi. The value of commercial built up excluding ground floor is reduced by 25%;
xvii. The value of Residential Plots (Defence Housing Authority) of specified categories may be decreased by 25%.
Under the said circumstances, FBR Chairman is requested to issue proper clarification in the interest of the general public that previous rebates are still allowed on additional storeyed of the residential bungalows/old constructions and old flats/apartments, it added.
Copyright Business Recorder, 2024