The Federal Board of Revenue (FBR) previously through office memorandum had already decided in February 2022 to re-notify new rates of immovable property valuation on March 1st, 2022.
Pursuant to Statutory Regulatory Orders (SRO) No 1534(1)/ 2021 and 1572(1)/2021, a special order of the government — or office memorandum — had already been issued by the tax machinery on the review of the valuation of immovable properties.
The FBR announced previously that the new valuation tables of the immovable properties would be re-notified on March 1, 2022.
Earlier, the FBR had suspended the new property valuation rates till February 1, 2022.
The FBR had considerably revised upward the values of residential and commercial immovable properties located in 40 major cities across the country.
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, dated 1 December 2021 issued new valuation tables of properties across 40 major cities with a view to bringing them closer to the actual market prices.
It is noteworthy that in terms of section 68(4) of the Income Tax Ordinance, 2001, the FBR has the authority to notify/revise the impartial market value of immovable properties. In this connection, the tax regulator initially provisioned the new valuation metrics on 1 December 2021.