The Federal Board of Revenue (FBR) will finalise the new market values of properties in consultation with all the stakeholders, said National Assembly Standing Committee on Finance and Revenue Chairman Faiz Ullah Kamoka. Addressing the business community during his visit to the Islamabad Chamber of Commerce and Industry (ICCI) on Saturday, he pointed out that the input of representatives from real estate and other sectors was vital to resolve the issue in an amicable manner.

The meeting was convened to discuss and propose new property rates to FBR. “The government is cognizant of the problems arising from the announcement of new market values of immovable property by FBR on December 1, 2021,” he said. He added that he had already discussed the matter with FBR chairman and informed the businessmen that a meeting with Board of Revenue, Punjab and FBR would be arranged to address the issue soon.

According to him, the National Assembly Standing Committee on Finance and Revenue had added this issue to the agenda of next meeting. The official announced that representatives from ICCI would also be invited in the next session so that the committee could receive their input and settle the matter with consensus. “ Valuation Review Committees (VRCs) are being established at regional trade office (RTO) level,” he said and urged the chamber to nominate its representatives for inclusion in VRCs of RTO, Islamabad.

He highlighted that overseas Pakistanis had made record investment in the real estate sector of Pakistan and the government would not create hurdles for them. He assured ICCI members that he would discuss their proposal, related to establishment of a new industrial estate in Islamabad, with Prime Minister Imran Khan. He hoped that the scheme materialises successfully.

Speaking on the occasion, ICCI President Muhammad Shakeel Munir said that the hike of 100-600% in market value of immovable property by FBR had created panic in the market. “This led to a reduction in property transactions and as a result, the government is losing hefty tax revenue,” he said. The official highlighted that banks were seeking property values from the real estate sector when pledging property as collateral for lending.

On the other hand, courts were seeking property values from the sector for adjudicating the property disputes, he said. “FBR’s decision to finalise the new property values without taking relevant stakeholders in confidence was completely inappropriate,” he added. Munir urged FBR to finalise the revised property rates in consultation with industry officials to settle the issue with consensus.