Provinces yet to review property valuation rates

[Naveed Yaseen]

By Mehtab Haider
ISLAMABAD: All four provincial governments have so far failed to act in accordance with the decision of the Federal Cabinet to review existing valuation rates of immoveable property in their respective areas, as existing rates did not match the fair market value.

The government wants to jack up the valuation rates in accordance with the existing rates of property in the market. Due to low fixation of valuation of property, people paid less tax by hiding the real value of their property.

Now Federal Board of Revenue (FBR) has requested the chief secretaries of all the four provinces to respond at the earliest on the Federal Cabinet’s decision to review the existing valuation rates of the immoveable properties in their provinces.

Following the observation of the Federal Cabinet in its meeting held on June 11, 2008 that valuation rates of immoveable properties do not commensurate with the fair market value of such immoveable properties, the Federal Finance Minister in his letter dated June 16, 2008, had requested chief ministers of all the four provinces to review and rationalise the existing values fixed for the purpose of their transfer.

Federal government has not received any response from any of the provinces so far, which indicates that the matter is still under consideration of the provincial governments and the revision of the rates is yet to be made. It may be noted that the revision of the existing fixed rates was expected to be completed during the month of June and was to be made effective from July 1, 2008. The newly appointed Member (Direct Taxes), FBR, in his separate letters dated August 13, 2008, also requested all the chief secretaries to look into the matter personally and do the needful at the earliest.

Till filing of this report, none of the provinces have so far forwarded its response to the federal government in this regard, forcing the FBR to issue letters so frequently.

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