The Federal Board of Revenue (FBR) has increased the valuation of properties by 100% to 700% without any logical justification and rationale, remarked Senator Kamil Ali Agha.
Speaking at a meeting of the Senate Standing Committee on Finance, Revenue and Economic Affairs on Monday, he expressed reservations about the mechanism followed by the FBR to determine the valuation of properties.
On the occasion, the FBR chairman argued that for property re-valuation, the board had followed the mechanism adopted in the past and pointed out that the FBR lacked sufficient resources to conduct a comprehensive, on-ground assessment of properties for their valuation.
FBR officials also briefed the standing committee on the revised valuation of immovable properties.
Committee Chairman Senator Talha Mehmood directed FBR officials to revoke the recent SRO issued in this regard and urged them to determine the value of immovable properties in consultation with relevant stakeholders over the next 15 days.
During the consultation process for a new mechanism, previous regulations and arrangements should be kept in view so that businesses could function as usual, he emphasised.
“For all future regulations, the FBR should provide ample time to the industry to comply and adjust its businesses accordingly,” he said and asked the officials to hold thorough deliberation by taking all the relevant stakeholders on board.
Officials of the Islamabad Chamber of Commerce and Industry and members of real estate organisations such as the Association of Builders and Developers informed the committee that the FBR had increased the valuation of properties without due deliberation.
Published in The Express Tribune, December 7th, 2021.