ISLAMABAD: The Federal Board of Revenue (FBR) has held in abeyance the recently notified valuation rules to allow registration of the in-process transactions till January 16, 2022.
A handout issued by the tax department on Tuesday states that taking cognizance of a number of complaints from across the country received from various stakeholders including real estate agents and town developers about an extraordinary rise in property rates resulting from the recently notified property valuation, FBR has issued detailed instructions through an Office Memorandum (OM) on the procedure to be adopted to review the anomalies in the property rates and rationalise the same.
Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.
The notification adds that all Chief Commissioners Inland Revenue (CCIRs) shall constitute Valuation Review Committees (VRCs) and notify them by December 10 whereas any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15.
The committee will undertake a consultative process with the stakeholders and engage SBP’s approved valuers for the determination of values, which could be either more or less than the lately notified valuations.
It is pertinent to mention that FBR is empowered to determine the fair market value of immovable properties as per Section 68(4) of the Income Tax Ordinance, 2001, and had issued new valuation tables of properties across 40 major cities with a view to bringing them closer to the actual market prices.
However, certain objections from various stakeholders including real estate agents and housing societies have been received highlighting anomalies and aberrations in the newly notified valuation tables.
Although the notified valuations were calculated through a rigorous consultative process and wherefore have largely been well-received, the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.
The VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification.
All recommendations made by VRCs vis-à-vis revaluations shall be re-notified on January 15, which shall come into force on January 16.