FBR Instructed to Real-Time Valuation of Properties in Upscale Areas

[LRE-Azan]

FBR Instructed to Real-Time Valuation of Properties in Upscale Areas

Islamabad: On October 13, it was reported that the Federal Board of Revenue (FBR) has received directions to conduct real-time valuations of properties in high-end residential areas in order to establish accurate property valuation tables.

The Federal Tax Ombudsman (FTO) has specifically instructed the FBR to carry out real-time valuations of housing schemes in affluent areas, encompassing not only land but also the structures built on it. This directive follows reports of discrepancies in the proposed property rates presented by the Regional Tax Office (RTO) in Multan. These discrepancies had resulted in undervaluation of properties in comparison to prevailing market rates. Moreover, the lack of clear distinctions between residential, commercial, and agricultural properties had further compounded the issue.

Furthermore, the current valuation table had omitted certain residential schemes launched by real estate developers. In response to these identified shortcomings, the RTO has committed to rectifying these problems in the next iteration of the proposed valuation table, which will subsequently receive approval from the FBR.

It's important to note that the existing property valuation process falls under the Pakistan Raises Revenue Projects (PRRO) initiative, which is a tax reform program guided by the World Bank. This ongoing initiative, carried out by tax authorities, is aimed at creating a consistent valuation table for properties and is subject to periodic review by the relevant Regional Tax Offices (RTOs).