The National Assembly Standing Committee on Finance rejected a proposal to implement a uniform 4% rental valuation rate for commercial properties under the Finance Bill 2025.
The committee resumed discussions on the Bill, with Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial and his team responding to queries from lawmakers. The session, chaired by MNA Naveed Qamar, addressed various provisions of the bill.
MNA Mirza Ikhtiar Baig proposed a reduction in the 4% rental valuation rate, citing concerns over its impact, particularly in rural areas. FBR Chairman Langrial countered, stating that reducing the rate was not an option. He explained that under the current system, tax officers had discretionary powers to determine rental valuations.
“If the committee does not support a uniform rate, we are willing to withdraw the proposal entirely,” the FBR chairman said.
MNA Usama Mela also expressed concerns, noting that while the 4% rate might work in urban areas, it could be difficult to implement in rural regions.
The FBR chief suggested that the system could be tested for one fiscal year, and if proven ineffective, adjustments could be made in the next fiscal year’s budget. He highlighted that FBR property valuations were more accurate than those used by Deputy Commissioners (DC), and the law allowed for future revisions.
MNA Naveed Qamar agreed that flexibility was necessary, proposing that adjustments be made where rates seemed excessive. Despite these discussions, FBR officials announced that the proposal would be withdrawn following resistance from the committee members.
