- October 17, 2023
- Posted by: Muhammad Afzaal
- Category: RBS News
The Federal Board of Revenue (FBR) has been instructed to evaluate housing developments in posh areas in real time to apply appropriate valuation tables for immovable properties, the news reported on 13 October.
The Federal Tax Ombudsman (FTO) has requested the Federal Board of Revenue (FBR) to conduct real-time valuations for housing schemes in posh areas, incorporating the expenses related to constructed structures. This request follows feedback from the FBR, which pointed out shortcomings in the Regional Tax Office (RTO) proposed rates in Multan.
These discrepancies resulted in the undervaluation of properties compared to the current market rates, and the need for clear differentiation between residential, commercial, and agricultural properties posed additional challenges.
Moreover, the valuation table did not include specific residential schemes introduced by real estate developers. Recognizing these deficiencies, the Regional Tax Office (RTO) has committed to rectifying these concerns in the upcoming proposed valuation table, and the revised version will be formally notified by FBR.
It’s important to emphasize that the existing immovable property valuation procedure is part of the Pakistan Raises Revenue Projects (PRRO) initiative, a tax reform agenda instructed by the World Bank. This ongoing initiative, managed by tax authorities, seeks to establish a standardized valuation table for immovable properties and undergoes regular evaluation by the relevant Regional Tax Offices (RTOs).
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