Islamabad: “The Federal Board of Revenue (FBR) is empowered to seek an explanation from property buyers and sellers about the difference in valuation rates as notified by FBR and Deputy Collector (DC) rate in a real estate transaction,” a news source quotes FBR Chairman Nasir Muhammad Khan.
According to details, Khan said this at the National Assembly’s Standing Committee meeting held so that the FBR could brief the public about their proposal regarding real estate tax imposition and implementation. The treasury members present in the meeting suggested that, as real estate transaction volume has dropped due to the huge difference in the FBR rates and DC value, a solution should be sought. These members believe that reducing this gap can remove investors’ concerns about being interrogated about the difference.
The committee decided that a solution to the the current crisis should be submitted to the FBR for discussion with the Ministry of Finance.
