New property valuations are suspended by FBR

New Property Valuations

KARACHI: According to an official, the Federal Board of Revenue (FBR) has delayed new property valuations until January 16 to investigate anomalies raised by important stakeholders.

“It has decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by the stakeholder including real estate agents and town developers,” the official said. “All chief commissioners of Inland Revenue shall constitute valuation review committees (VRCs), and notify them by December 10, 2021.”

On Monday, the Senate’s Standing Committee on Finance and Revenue asked the FBR to modify the revised valuation within 15 days after consulting with stakeholders.

“Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021,” the official stated.

“Chief Commissioners will undertake a 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.”

The FBR has noticed many complaints received from various stakeholders around the country, particularly about exceptionally high increases in property rates as a result of the recently notified property valuation.

As a result, it published specific instructions on Tuesday in the form of an Office Memorandum (OM) on the method to be followed to analyse and rationalize irregularities in property rates.

On December 1, the FBR released revised valuation tables for properties in 40 major cities, intending to bring them closer to market pricing.

“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 FBR said.

It went on to say that the VRCs will make their decisions on the representations by January 10 and forward them to the FBR for notification. All revaluation recommendations issued by VRCs will be re-notified on January 15 and will take effect on January 16.

“In the meantime,” the FBR noted, “SRO No.1534-1572(I)/2021 dated 01.12.2021 [the revised property valuation] is kept in abeyance to allow registration of the in-process transactions.” As a result, according to an FBR official, property transactions occurring until January 15 will be subject to the prior FBR property valuation.

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