The Federal Board of Revenue (FBR) has decided to engage top property valuation experts of the State Bank of Pakistan (SBP) for proper assessment of properties.

According to a statement issued by the revenue board on Tuesday, the SBP experts will hold meaningful consultations with key stakeholders including real estate agents and town developers.

The initiative has been necessitated after the FBR received a number of complaints from different quarters, where property valuations had been reported to be beyond market prices. In the statement, the FBR emphasised that the recently notified property valuations were finalised after due diligence and a consultative process by its field formations.

The upward revision in valuations across the country was aimed at bringing property values closer to market prices, in line with global practices. “This rigorous exercise is reasonably good,” the statement added. However, after receiving complaints, the FBR took cognisance of the issue and decided to engage SBP experts for consultation with the stakeholders.

This consultative process will review such cases individually, make necessary recommendations to remove distortions, if any, and take property values near market prices.

Meanwhile, taking cognisance of complaints from across the country about extraordinary rise in property rates resulting from the recently notified valuations, the FBR has held in abeyance the new property valuations till January 16, 2022.

Read FBR directed to revoke new property valuations

In an office memorandum on Tuesday, the FBR issued instructions about the procedure to review the anomalies in property rates and rationalise the same. “It has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation was pointed out by a stakeholder,” the statement said.

All chief commissioners inland revenue (CCIRs) should constitute valuation review committees (VRCs) and notify them by December 10, 2021, it said.

“Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021.”

The chief commissioners will undertake a meaningful consultative process with the stakeholders and engage the State Bank of Pakistan’s approved valuers for the determination of values, which could be either more or less than the lately notified valuations.

The FBR insisted that it had the authority to determine fair market values of immovable properties in terms of Section 68(4) of the Income Tax Ordinance 2001. (With
additional input from APP)

Published in The Express Tribune, December 8th, 2021.

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