Islamabad: The FBR boosted property valuations for tax purposes in 40 of the country’s biggest cities on December 1 to put them in line with market pricing. When the rates were changed, an actual income tax was applied on real estate transactions.
The FBR boosted property valuations for tax purposes in 40 of the country’s biggest cities on December 1 to put them in line with market pricing. When the rates were changed, an actual income tax was applied on real estate transactions.
The FBR has previously declared that it will engage top property valuation specialists from the State Bank of Pakistan, who will have meaningful meetings with important players such as real estate brokers and town developers. This consultation approach will examine such instances individually and make the required suggestions to eliminate any distortions and bring property values closer to market value.
“It has determined to evaluate and reread the notified value tables anytime stakeholders such as real estate brokers and town developers raise concerns about overvaluation or undervaluation,” the source stated. “By December 10, 2021, all chief commissioners of the Internal Revenue Service must create and notify value review committees (VRCs).”
The VRCs will render a decision on the submissions by January 10, 2022, and transmit it to the FBR for notice. All revaluation recommendations given by the VRCs will be re-notified on January 15, 2022, and will take effect on January 16.
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