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FBR suspends implementation of new property valuations rates till January 16

Federal Board of Revenue (FBR) suspends implementation of new property valuations rates till January 16 for the purpose of bringing an end to the ongoing controversy over the decision to increase valuation rates for property.

The Federal Board of Revenue (FBR) on Tuesday held in abeyance the new valuations for taxation until January 16 next year in the wake of an extraordinary rise in property rates and complaints from realty stakeholders.

The Federal Board of Revenue (FBR) had on December 1 revised upwards the property valuations for the purpose of taxation in 40 major cities of the country to bring them on a par with market rates. The rates were revised in order to charge actual income tax on property transactions.

An official announcement said all chief commissioners inland revenue (CCIRs) would constitute valuation review committees (VRCs) and notify them by December 10. Any stakeholder having any reservations over the valuations may lodge a representation before the VRC by Dec 15.

The CCIRs will undertake meaningful consultative processes with the stakeholders and engage the SBP-approved valuers for determination of values, which could be either more or less than the lately notified valuations.

The FBR has already announced engaging top property valuation experts of the State Bank of Pakistan who will hold meaningful consultations with the key stakeholders, including real estate agents and town developers. This consultative process will review such cases individually and thereby make necessary recommendations to remove distortions if any and bring property value near market price.

Until this process is completed, the application of new valuation rates will be suspended till mid-January 2022. The FBR received complaints from across the country from various stakeholders, including real estate agents and town developers, about an extraordinary rise in property rates resulting from the recently notified property valuation.

To begin with, the FBR issued detailed instructions through an office memorandum on the procedure to be adopted to review the anomalies in the property rates and rationalise the same. Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.

It is pertinent to mention that the FBR is empowered to determine fair market value of immovable properties in terms of Section 68(4) of the Income Tax Ordinance, 2001. Therefore, the FBR vide SRO No.1534-1572(I)/2021 issued new valuation tables of properties across 40 major cities with a view to bringing them closer to the actual market prices.

However, the FBR received certain objections from various stakeholders, including real estate agents and housing societies, highlighting anomalies and aberrations in the newly notified valuation tables. Although the notified valuations have been arrived at by the FBR Field Formations through a rigorous consultative process and wherefore have largely been well received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

The VRCs will take a decision on the representations by January 10, 2022, and forward the same to the FBR for notification. All recommendations made by the VRCs on revaluations will be re-notified on January 15, 2022, which will come into force on January 16.

In the meantime, SRO1534-1572(I)/2021 is held in abeyance to allow registration of in-process transactions, said the announcement.

Press Release of FBR regarding suspension of FBR Rates of property valuation up to 16th January, 2022

Taking cognizance of a number of complaints from across the country received from various stakeholders including real estate agents and town developers about extraordinary rise in property rates resulting from the recently notified property valuation, FBR has issued detailed instructions this evening through an Office Memorandum (OM) on the procedure to be adopted to review the anomalies in the property rates and rationalize the same. Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder. It has been stated in the instructions that all Chief Commissioners Inland Revenue (CCIRs) shall constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021. Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake meaningful consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.

It is pertinent to mention that Federal Board of Revenue (FBR) is empowered to determine fair market value of immovable properties in terms of section 68(4) of the Income Tax Ordinance, 2001. Therefore, FBR vide SRO No.1534-1572(I)/2021, dated 01.12.2021 issued new valuation tables of properties across 40 major cities with a view to bringing them closer to the actual market prices.

However, certain objections from various stakeholders including real estate agents and housing societies have been received highlighting anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

The VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification. All recommendations made by VRCs vis-à-vis revaluations shall be re-notified on January 15, 2022, which shall come into force on January 16, 2022. In the meantime, SRO No.1534-1572(I)/2021 dated 01.12.2021 are held in abeyance to allow registration of the in-process transactions.

ایف بی آر نے نئی پراپرٹی ویلیوایشن کا اطلاق 16 جنوری 2022 تک موخر کر دیا

ملک بھر سے مختلف اسٹیک ہولڈرز بشمول رئیل اسٹیٹ ایجنٹس اور ٹاؤن ڈویلپرز کی جانب سے پراپرٹی کی قیمتوں میں غیرمعمولی اضافے  کے حوالے سے  موصول ہونے والی متعدد شکایات کا نوٹس لیتے ہوئے ایف بی آر نے بذریعہ  آفس میمورینڈم ،  جائیداد کی قیمتوں میں بے ضابطگیوں کا جائزہ لینے اور انہیں معقول کرنے کیلئے  طریقہ کار پر تفصیلی ہدایات جاری کی ہیں  ۔ اسی طرح یہ فیصلہ کیا گیا ہے کہ جہاں بھی کسی اسٹیک ہولڈر کی جانب سے اوور ویلیوایشن یا انڈر ویلیوایشن  کی نشاندہی کی گئی ہو وہاں نوٹیفائیڈ ویلیوایشن ٹیبلز کا جائزہ لیا جائے۔ ہدایات میں کہا گیا ہے کہ تمام چیف کمشنرز ان لینڈ ریونیو (CCIRs) ویلیوایشن کا جائزہ لینے والی  کمیٹیاں (VRCs) تشکیل دیں گے، اور انہیں 10 دسمبر 2021 تک  نوٹیفائی کریں گے۔ کسی بھی اسٹیک ہولڈر کی جانب سے ویلیویشن کے بارے میں کوئی تحفظات ہیں  تو وہ وہ 15 دسمبر2021 تک VRC کے روبرواپنی نمائندگی  پیش کر سکتا ہے  ۔ چیف کمشنرز اسٹیک ہولڈرز کے ساتھ جامع مشاورتی عمل کا آغاز کریں گے اور قیمتوں کے تعین کے لیے اسٹیٹ بینک کے منظور شدہ نرح  شامل کریں گے، جو حال ہی میں جاری کردہ ویلیو ایشنز سے زیادہ یا کم ہو سکتے ہیں۔

قابل ذکر  بات یہ ہے کہ فیڈرل بورڈ آف ریونیو (ایف بی آر) کو انکم ٹیکس آرڈیننس 2001 کے سیکشن 68(4)کے مطابق غیر منقولہ پراپرٹیز کی منصفانہ مارکیٹ ویلیو کا تعین کرنے کا اختیار حاصل ہے۔ لہٰذا ایف بی آر SRO نمبر1534-1572(i)/2021، بتاریخ  01.12.2021 نے 40 بڑے شہروں میں پراپرٹیز  کو اصل مارکیٹ ویلیو کے قریب  ترکرنے کیلئے نئے ویلیوایشن ٹیبلز جاری کئے ہیں ۔

تاہم مختلف اسٹیک ہولڈرز بشمول رئیل اسٹیٹ ایجنٹس اور ہاؤسنگ سوسائٹیز کی جانب سے کچھ اعتراضات موصول ہوئے ہیں جو کہ نئے جاری کردہ ویلیوایشن ٹیبلز  میں بے ضابطگیوں اور نقائص کو واضح کرتے ہیں۔ اگرچہ ایف بی آر فیلڈ فارمیشنز کی طرف سے   موثرمشاورتی عمل کے ذریعے پراپرٹی ویلیوایشن جاری کئے گئے    جس کی  وجہ سے انہیں کافی حد تک پذیرائی ملی ہے، مگر پھر بھی غلطی کے امکان کو رد نہیں کیا جا سکتا یا  انہیں  پتھر پر لکیر نہیں گردانا جا سکتا ۔

وی آرسیز جنوری 2022 تک نمائیندگیوں پر حتمی فیصلہ کریں گے اور اسے نوٹیفیکشن کے لئے ایف بی آر کو ارسال کریں گے۔ وی آرسیز کی طرف سے کی جانے والی تمام سفارشات کو 15 جنوری 2022 کو دوبارہ نوٹیفائی کیا جائے گا۔ جو کہ 16 جنوری 2022 کو نافذاالعمل ہو گا۔ دریں اثناء ایس آر او بتاریخ یکم دسمبر 2021 کو زیر التواء میں رکھا گیا ہے تاکہ جاری ٹرانزیکشنز کی رجسٹریشن کی اجازت دی جا سکے۔

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