ISLAMABAD: The Federal Board of Revenue (FBR) has renotified a new revised assessment of real estate properties.
The FBR of March 02, 2022 reissued notified real estate valuation tables for the main cities of the country.
On December 1, 2021, the FBR released fresh and updated rating tables for about 40 major cities across the country. However, the FBR postponed the implementation of the new real estate valuations until January 15, 2022 and further postponed until January 31, 2022. The FBR again postponed the implementation on the valuation table until as of February 28, 2022.
The tax authority’s decision to postpone the implementation came after several complaints received by the FBR regarding a high valuation in the new tables.
Complaints were filed by stakeholders including real estate agents and municipal developers, who pointed to an extraordinary increase in property rates in the latest valuation tables.
The FBR has given detailed instructions to tax offices on how to review anomalies in land rates and rationalize them.
Accordingly, it has been decided to review and revise the reported valuation tables whenever an overvaluation or undervaluation is reported by a stakeholder.
The FBR has asked all Chief Commissioners Inland Revenue (CCIR) to form Valuation Review Committees (VRCs) and notify them by December 10, 2021.
Any stakeholder with concerns about the valuations may file a representation with VRC by December 15, 2021. The Chief Commissioners will undertake a consultation process with stakeholders and engage SBP’s licensed appraisers for the determination of values, which could be higher or lower than recently notified valuations. .
To publish the new and revised assessment schedules, the FBR has exercised its powers under the Income Tax Order 2001. The goal was to bring RBF values to par with fair market values.
However, some stakeholder objections highlighted anomalies and aberrations in the newly notified assessment tables. Although the ratings notified have been obtained by FBR Field Formations through a rigorous consultation process and have therefore been widely welcomed, the possibility of error cannot be excluded, and the same cannot be considered as engraved in stone.
Here are the evaluation tables renotified by the FBR: