Islamabad: The Senate Standing Committee on Finance and Revenue on Monday (December 06), ordered the Federal Board of Revenue (FBR) to withdraw the recently increased immovable property valuation rates (issued for as many as 40 cities) until stakeholders could reach an agreement, news sources reported. After consultation with realtors and the construction sector, the FBR will release revised value rates within 15 days.
As per the report, the FBR was directed to organise consultation sessions with stakeholders in order to bring property valuations in line with market values. According to FBR Chairman Dr Ashfaq Ahmad, the authority enhanced valuations after consulting with realtors in some areas, but this could not be done in other cities owing to a shortage of resources. However, the authorities are willing to reconsider the price rise. He stated that the FBR acted in accordance with historical procedures since the government has delegated the authority to set valuation rates to the FBR. Members of the committee, including realtors and senators, asked the FBR chairman to revoke the changes and restore the old prices until a consensus could be reached.
Previously, on December 1, the FBR announced a 100% to 700% increase in valuation rates for 40 cities across the country, which was met with opposition from the real estate industry. According to the FBR, the measure is intended to increase the tax base and prevent black money from entering the real estate industry, in accordance with Financial Action Task Force (FATF) requirements.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
