“The FBR has formed different committees to evaluate valuation rates of property sector in different cities at level of field formations but it is not yet known whether these rates will be revised upward or kept at existing levels in the next financial year” top FBR officials confirmed on Tuesday.
It is considered opinion of the FBR that despite valuation rates it is still 20 to 30 percent lower than the actual market value. But keeping in view the COVID-19 pandemic and halting of economic activities, it will be hard for the FBR for convincing the government to revise the valuation rates on tables on higher side. However, it is not yet known what the government decides on it, added the official sources.
The FBR sources said that the construction package announced by the government through Presidential Ordinance in April 2020 would be granted legal cover through upcoming Finance Bill 2020. However, this construction package had not yet resulted into boosting up construction sector as no one had yet registered himself for availing this scheme. The timeframe for registration is not yet over but the prevailing uncertainty is resulting into barring the potential investors for availing this scheme. Amid such uncertainty, it will be hard for the FBR for jacking up valuation rates for properties.
The FBR held meetings with concerned stakeholders including with Association of Builders and Developers of Pakistan for consultation just ahead of the upcoming budget.
The ongoing exercise may result to up-date the valuation tables of immovable property notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001.