The Senate Standing Committee on Finance, Revenue, and Economic Affairs has recommended the Federal Board of Revenue (FBR) to revoke the recently issued SRO with regard to the revised valuation of immovable properties.
The meeting of the Senate Standing Committee on Finance, Revenue, and Economic Affairs was held under the Chairmanship of Senator Talha Mehmood at Parliament House. Senator Kamil Ali Agha expressed his serious reservations regarding the mechanism adopted by FBR with regard to the valuation of properties.
He asserted that FBR had increased the value of properties from 100 percent to 700 percent without any logical justification and rationale. Anomalies exist not only at the federal but district level with regard to the valuation of properties as FBR did not make the consultation with the real stakeholders, Senator Agha added.
Chairman FBR replied that FBR has adopted the same mechanism for revaluation of immovable properties as practiced in the past. However, he said that we do not have sufficient resources for a comprehensive on-ground assessment of properties for valuation.
In addition, senior office bearers of the Islamabad Chamber of Commerce and Industries and members of other real estate organizations, such as ABAD, informed the Committee that FBR had increased the value of properties without any due deliberation in Islamabad, Lahore, and other cities of Punjab.
FBR did a consultation in determining the properties value of Karachi, whereas it has not made any consultation with relevant stakeholders in Punjab and Islamabad. Rates of properties have increased manifold in F7, G11, or even the suburb of Islamabad. They asked the Chairman FBR to make consultations in other cities.
Chairman FBR said that there was no valuation table existing five to six-year back. The PML-N government had given the mandate to FBR with regard to determining the properties rates, and an amnesty scheme had also been introduced, in which people have whitened the black money worth Rs. 350 billion for the period of one and half years, he added.
FBR has determined the value of properties with good intention, and it is possible that the price may be higher or lower somewhere, but we are ready to review the revaluation of immovable properties, he remarked.
The Chairman Committee said that FBR should provide ample time for the industry to comply and adjust their businesses for all future regulations besides taking on board all the relevant stakeholders.
He also directed the FBR to revoke the recent SRO issued in this regard and urged the FBR officials to determine the value of immovable properties in consultation with relevant stakeholders in the next fifteen days.