Read Time: 2 mins
The FBR, Federal Board of Revenue is all set to update the valuation tables of immovable properties in order to strengthen its revenue from the real estate sale-purchase deals. Credible sources revealed that the expected update in the valuation tables will be an upward revision.
For this purpose, all Regional Tax Offices (RTO) other than Corporate Regional Tax Offices (CRTOs) and Large Taxpayer Units (LTUs) has been directed to establish committees for updating valuation tables of immovable property notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001.
Responding to a query, sources revealed that these committees would revise the prices following the notification from the board regarding the valuation tables of immovable property. They will also issue prices of properties for the cities, which were not mentioned earlier.
Moreover, reports also suggest that an Inland Revenue (IR) or any other private person would be designated by the committee in order to carry out the field survey to determine the actual area-wise market values for the real estate properties.
The values, which are going to be updated on properties located in Karachi, Islamabad, Abbottabad, Lahore, Bahawalpur, Faisalabad, Peshawar, Rawalpindi, Multan, Mardan, Jhang, Gujrat, Sukkur, Gujranwala, Hyderabad, Sialkot, Sargodha, Sahiwal, Quetta, Jhelum, and Gwadar.
At the moment, the buyer were needed to pay a 3 percent tax on the difference between the FBR value and DC value of property to demonstrate the source of investment to the limit of the differential between FBR value and DC value.
As we all know that the existing rates notified by the board were clearly on the lower side as compared to the actual and fair market value hence FBR had intended to make an upward revision of the prices of immovable properties up to 80 percent of actual market value to collect significant revenue from sale/purchase transactions.