Islamabad: The Federal Board of Revenue (FBR) has been directed to value housing schemes in posh areas on real time basis to implement accurate valuation tables for immovable properties, reported by a news source on October 13.
The Federal Tax Ombudsman (FTO) has asked the FBR that housing schemes in posh areas must be valued in real-time, including the cost of built-up structures. The move comes after the FBR received feedback indicating flaws in the proposed rates by the Regional Tax Office (RTO) in Multan. These discrepancies led to under-valuation of properties concerning prevailing market rates, and the absence of clear distinctions between residential, commercial, and agricultural properties added to the challenges.
Additionally, certain residential schemes announced by real estate developers were omitted from the valuation table. Acknowledging these shortcomings, the RTO has committed to addressing these issues in the next proposed valuation table, which will subsequently be notified by the FBR.
It is worth noting that the current valuation process of immovable properties falls under the Pakistan Raises Revenue Projects (PRRO) initiative, a taxation reform agenda instructed by the World Bank. This ongoing process, undertaken by tax authorities, aims to develop a consistent valuation table for immovable properties and is subject to periodic review by respective Regional Tax Offices (RTOs).
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.
