Category: National

FBR amends fresh property valuations for Islamabad

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday made changes to property valuation tables for the capital city.

The FBR issued SRO 428(I)/2022 dated March 15, 2022 to a make amendment in the SRO 342(I)/2022 dated March 02, 2022.

Through the latest SRO the FBR withdrew the property valuation tables for DHA Phase 1 – 5 and DHA Valley for both residential and commercial plots.

The following entries in the valuation tables have been deleted for residential immovable properties:

62	DHA Phase 1	Any size	30,000
63	DHA Phase 2	Any size	35,000
64	DHA Phase 2 Extn	Any size	8,264
65	DHA Phase 3	Any size	16,529
66	DHA Phase 4	Any size	9,917
67	DHA Phase 5	Any size	19,835
68	DHA Valley	Any size	8,264

Similarly, following entries in the valuation tables have been deleted for commercial immovable properties:

171	DHA Phase 1	Commercial plot	23,900
172	DHA Phase 2	Commercial plot	22,200
173	DHA Phase 2 Extn	Commercial plot	9,183
174	DHA Phase 3	Commercial plot	9,183
175	DHA Phase 4	Commercial plot	9,183
176	DHA Phase 5	Commercial plot	18,365
177	DHA Valley	Commercial plot	2,755

The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022. The FBR once again deferred the implementation on the valuation table till February 28, 2022.

The revised tables of valuation of immovable properties have been issued and implemented on March 02, 2022.

March 15, 2022

ECC approves Ramzan Relief Package for all Pakistanis

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved Rs8.2 billion for Ramzan Relief Package for all Pakistanis.

Federal Minister for Finance and Revenue Shaukat Tarin presided over Economic Coordination Committee (ECC) of the Cabinet, on Tuesday.

Ministry of National Food Security & Research presented a summary for Ramzan Relief Package. The ECC approved in principle the Ramzan Relief Package -2022, involving subsidy of 8.2 billion for the whole population of the country rather than only 20 million households registered with Ehsaas Rashan Riyat Programme with directions to frame procedural mechanism for limiting the interventions by each family.

READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn

Ministry of National Food Security & Research submitted a summary regarding intervention price for Cotton 2022-23 Crop. In order to revive cotton production in the country, bring stability in domestic market and assure fair return to the farmers, the ECC allowed Rs. 5,700/40 kg threshold intervention price of seed-cotton. The ECC further allowed to initially procuring two million bales of cotton at intervention price with direction that quantity would be reviewed on monthly basis.

Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Economic Affairs Omar Ayub Khan, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Adviser to the Prime Minister on Commerce & Investment Abdul Razak Dawood, Federal Secretaries and senior officials participated in the meeting.

READ MORE: PM Imran reduces, freezes POL prices

Ministry of Economic Affairs submitted a summary on G-20 Debt Service Suspension Initiative (DSSI). The ECC allowed Ministry of Economic Affairs to sign 15 debt rescheduling agreements with various credit countries, finalized under Debt Service Suspension Initiative (DSSI).

ECC approved the proposal of Petroleum Division regarding issuance of sovereign guarantee amounting to Rs. 21,000 million in favour of M/s Faysal Bank Limited at considerably lower mark up rate for the remaining tenor of the loan i.e 4 and ½ years along with issuance of letter of comfort for new finance agreement w.r.t pipeline infrastructure development project LNG-II.

On a proposal of Petroleum Division for re-allocation of OGDCL’s Jhal Magsi gas to SSGCL, the ECC allowed reallocation of 15 MMCFD Jhal Magsi gas to SSGCL. SSGCL would carry out the project of gasification of Jhal Magsi town and would embark the required gas out of the proposed allocation. The injection of this gas will help mitigate SSGC’s gas demand-supply deficit.

READ MORE: PM Imran announces setting up technology startup fund

On a proposal of Petroleum Division for allocation of gas from Mari (Deep) gas reservoir to M/s SNGPL, the ECC approved in principle upto 110 MMCFD gas from Mari deep (Goru-B) gas reservoir allocation to SNGPL till 30-06-2024 on firm basis with direction for the determination of price mechanism of gas.

To address PSO and other Oil Marketing Companies (OMCs) concerns over mechanism of payment of Price Differential Claims (PDC), Petroleum Division submitted a summary on revised mechanism with the change to the previously approved mechanism that the PDC will be applicable on sale of petroleum products rather than on procurement of products. The ECC approved the proposal with allocation of additional Rs. 11.73 billion as supplementary grant to meet the expenditure on payment of PDC up to 31st March 2022.

ECC also approved Technical Supplementary Grant amounting to Rs. 200 million to Pakistan Military Accounts Department (PMAD) for conversion of Pensioners to Direct Credit System.

ECC also approved Technical Supplementary Grant of Rs. 3500 Million in favour of Higher Education Commission for the Project titled “Pak University of Engineering and Emerging Technologies (PUEET).

March 15, 2022
State Life Insurance directed to pay claim to widow

ISLAMABAD: The President of Pakistan Dr. Arif Alvi has directed State Life Insurance Corporation of Pakistan (SLICP) to pay claim of Rs412,000 to a widow along with interest amount for unnecessary delay, statement said on Sunday.

Expressing displeasure over an unnecessary delay of seven years in the payment of life insurance claim to a widow, President Dr Arif Alvi directed the SLICP to pay the sum assured of Rs 412,000 as well as add inflation cost/interest to the accrued amount.

READ MORE: President Alvi orders State Life to pay death insurance

He further directed SLICP to apologize to the widow and change its financial system attitude and report compliance to Wafaqi Mohtasib within 30 days.

The President passed these orders while rejecting a representation of SLICP against a decision of the Wafaqi Mohtasib directing it to pay the claimants the assured amount without further delay.

READ MORE: President Alvi directs bank to refund unfair recovery

As per the details, the deceased Mr Zahid Altaf Bhatti had obtained two life insurance policies from SLICP (the Agency) on 06.07.2007 and 25.06.2010 for the sum assured of Rs 212,000 and Rs 200,000 respectively. He died on 20.03.2015 and his wife, Mst Fouzia Zahid Bhatti (the complainant), approached the Agency to pay the insurance claim but the latter refused to pay the sum on the ground that the deceased had pre-insurance ailments and was a patient of liver disease/hepatitis C.

READ MORE: President Alvi rejects FBR plea in maladministration cases

Feeling aggrieved, Mst Fouzia Zahid Bhatti filed a complaint with Wafaqi Mohtasib who directed SLICP to pay the amount and report compliance within 30 days.

Instead of implementing the orders of the Wafaqi Mohtasib, SLCIP filed a representation with the President against the decision of the Mohtasib. Rejecting the representation, President Dr Arif Alvi referred to section 80 of the Insurance Ordinance, 2000, which provides that an insurance policy cannot be called in question on the grounds of misrepresentation, false statement or suppression of material facts after two years from the date when the policy was originally effected.

READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer

In the present case, the policies were issued in 2007 and 2010, whereas the policyholder expired in 2015, thus, the policy could not be called into question. He further noted that the Agency had failed to substantiate its claim and no clinical investigation or diagnostic assessment had been produced to corroborate the existence of pre-insurance ailment.

The President further observed that the Confidential Report of the Field Officer had also declared the insured as healthy and categorically stated that he knew the deceased for the last 12 years.

READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

The President underlined that ethical principles and compassion should not be ignored in the pursuit of making profits.

He stated that SLICP came out with frivolous excuses and delayed the payment in an unethical manner. The President advised the Agency to change its financial-system attitude and add inflation cost/interest to the accrued amount so that the beneficiary is not slighted because of pathetic delays.

March 13, 2022
IMF should not object to PM relief package: Tarin

ISLAMABAD: Pakistan’s Finance Minister Shaukat Tarin on Wednesday said International Monetary Fund (IMF) should not object to the relief package announced by the prime minister as the country is generating own resources for the package besides increasing the revenue.

The Finance Minister addressing a new conference here said negotiations have been held with the IMF over this relief package announced by the Prime Minister. He said the IMF should not have objections on the package as we are meeting it from our own resources including enhancement in tax revenues. He said this will not increase our fiscal deficit.

READ MORE: PM Imran reduces, freezes POL prices

Finance Minister Shaukat Tarin said the government is providing a subsidy of one hundred and four billion rupees on petroleum products in order to provide relief to the people.

He said given soaring prices of petroleum products in the international market, we have reduced the petroleum levy and brought to zero the sales tax.

Tarin said that those using seven hundred units of electricity per month will be provided with subsidy of five rupees per unit for the next four months. For this, he said, we will have to give a subsidy of 136 billion rupees.

Shaukat Tarin said the government has also given industrial relief package to promote industries in the country. He said the package envisages tax holiday for overseas Pakistanis and incentives for the turnaround of sick industries.

READ MORE: Businessmen hope $5bn investment under PM package

The Finance Minister said tax exemptions have also been given to the IT sector in order to significantly bolster its exports. He pointed out that the IT sector grew by forty seven percent last year and currently growing by seventy percent. He said we target one hundred percent growth in this sector during the next year. Shaukat Tarin said our trade deficit has also come down.

Highlights of the press conference:

Petroleum relief: Prior to Prime Minister’s relief package, govt. was bearing Rs 39 billion fortnightly loss through budgeted PL and Sales tax. At that time, levy on petroleum was Rs17.92 per litre and on Diesel, it was Rs13.30 per litre. With the increase in international prices and Prime Minister’s relief Package, the government will further incur loss of Rs 13.9 billion and fortnightly loss will expand to Rs52 billion. Now petroleum levy and sales tax reduced to zero percent (except for petrol Rs1.8 per Litre)

The estimated budget loss in the next four months would be Rs250-300 billion just from petroleum relief with the assumption of $100/bbl weighted average international price.

Electricity relief: Prime Minister announced reduction of Rs. 5 per unit in base rate for four months consecutively. The package will be applicable to all commercial & domestic non-ToU ( non -Time of Use) consumers having monthly consumption up to 700 units, excluding lifeline consumers. Overall relief is estimated at Rs 136 billion.

Industrial package:

READ MORE: Tax amnesty launched for setting up new industrial units

1- Investment in new industrial units and expansion and modernization of existing units. 5 per cent across the board payment of tax for all amount invested Minimum investment threshold is Rs. 50 million.

Industrial unit to be set-up as a company Commercial production to begin by June 30, 2024. Previous beneficiaries of Amnesty Schemes of 2018 and 2019 will not eligible. Bank loan defaulters in last three years will not be eligible.

2- Incentive for Revival of Sick Units

Applicable only to companies. Industrial units facing accumulated losses in continuous 3 years to be treated as sick units.

Acquiring company allowed to adjust losses of the sick units against its income for consecutive three years.

Revival of the sick unit to be completed within three years of acquisition. Incentive for Foreign Investment in Industrial Sector.

3- Incentives for Overseas

Pakistan citizens who are non-resident for five years and resident Pakistani having declared foreign assets are eligible to invest.

One-time tax credit equal to 100 per cent of PKR equivalent of remittance to be availed in 5 years. Investment to be made in a new industrial unit. Commercial production to start by 30th June, 2024. New industrial unit to be a company

IT package:

READ MORE: PM Imran directs implementing incentives for IT industry

• Tax exemption for IT/TES (Information Technology Enabled Services) firms & free lancers for 5 years.

• Reduction in Capital Gain Tax on VC funding into Start ups to zero percent during 5 years.

• In a historic move, PM has directed to allow IT/ITeS(Information Technology Enabled Services) Companies and Freelancers to retain 100 per cent amount of remittances received through proper banking channels, in FCY Accounts, without any compulsion to convert them into PKR.

• Furthermore, there will be no restriction on outward remittances from FCY account for PSEB registered IT Companies and Freelancers.

• Prime Minister has also directed SBP to introduce Financing streams for IT/ITeS sector and Freelancers keeping in view operational architecture and industry needs for these sectors.

• Recommendations of Pakistan Technology Start-up Fund were also approved by the Prime Minister as part of this historic package for the creation of a Public Private Partnership (PPP) venture capital fund. Ignite National Technology Fund will create this Fund through PPP.

READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn

Benefits:

• Bringing internationally parked Foreign Currency to Pakistan.

• Encourage foreign companies to shift business to Pakistan.

• Employment creation and entrepreneurship promotion in the country.

Trade Deficit:

US $ mn November December January February Exports 2901 2765 2614 2808 Imports 7899 7666 6891 5903 Trade deficit 4998 4901 4277 3095

• Significant decline in trade deficit due to significant decline in imports in the month of January & February.

• Compared to 1HFY22, the current account deficit expected to decline in 2HGFY22. Already visible from trade deficit.

• The CAD reported by SBP is higher due to some imports not reflected at PBS data due to sensitive nature but recorded by EAD. Importantly, the import differential is funded.

• It is pertinent to note that trade deficit is lowest since June 2021. This will bring the deficit down significantly.

Inflation:

• February CPI is lower at 12.2 per cent as compared with 13 per cent in January.

• Adjusted with tomatoes prices the February inflation would have been 10.8 per cent YoY basis.

• Similarly, if we adjust the month on month tomatoes prices, the inflation would have been only 0.6 per cent, on month-on-month basis.

• It is pertinent to note that prices are flat since November 2021, month-on-month basis. Dec (-0.02 per cent), January (0.4 per cent) and February (0.6 per cent) adjusted with tomatoes prices.

• Lastly, Core inflation is witnessing a declining trend in February at 7.8 per cent as compared with 8.2 per cent in January.

• Going forward, it is expected that tomatoes prices will experience decline from mid March due to arrival of crop in Punjab. First week prices of Tomatoes have already declined by 27 per cent.

Key Takeaways of OICCI Press Conference:

• 207 Companies have invested $18.5 billion since 2012. They pay one 3rd of our taxes.

• They believe Pakistan is better than 6 out of 10 regional countries in 2021 verses 3 out of 10 in 2019.

• In 2021, 68 per cent expect accelerating growth in their businesses in the next 2-3 years vs only 27 per cent in 2019.

• They want long-term policies to be prepared by the government to help them invest in Pakistan. Moreover, they want further improvement in ease of doing business.

• Given, the significant improvement in business climate, they want to conduct international road shows to showcase the opportunities in Pakistan.

? Sehat Sahulat Program (Beneficiary Satisfaction Based on 3rd Party Feedback Survey)

Satisfaction rate ( per cent) Total Complaints Total Resolved Total Hospital Visits Total Families Enrolled 97 68,767 67,425 3,247,198 27,694,903

• 96 per cent beneficiaries are satisfied with the treatment provided by Sehat Sahulat program.

• 54 per cent beneficiaries are satisfied with the hospital services.

• 97 per cent beneficiaries are satisfied with the hospital staff behavior.

• 98 per cent beneficiaries are satisfied with Sehat Sahulat program staff behavior at hospital.

• 98 per cent beneficiaries were not asked to pay for services during treatment.

March 10, 2022
Past shows PMs survive no-confidence motions

KARACHI: The no-confidence motions moved by opposition in the past have failed to remove sitting prime ministers, analysts at Arif Habib Limited said on Wednesday.

“No Prime Minister in the history of Pakistan has been removed via a no-confidence motion,” they said, adding these have been requisitioned twice before; the first time against Prime Minister Benazir Bhutto in 1989 and the second time against Prime Minister Shaukat Aziz in 2006, whereby both managed to overthrow the motion with more votes in favour of retaining the premiership.

READ MORE: PM Imran reduces, freezes POL prices

As per Article 54 of the Constitution of Pakistan, the opposition has requisitioned the National Assembly for a no-confidence motion against the Prime Minister, dated March 8th, 2020. This was signed by one fourth of the members of the house, which gives the speaker a maximum of 14 days to summon a session.

READ MORE: PM Imran directs implementing incentives for IT industry

Once the session is called and a no-confidence resolution is circulated, a motion will be moved the next day. Voting will then commence after the expiry of three days or before seven days, from the day the motion is moved. Therefore, a session has to be be called by March 22nd, 2022 whereas voting must take place between March 26th and March 30th, 2022.

READ MORE: PM Imran announces setting up technology startup fund

Pertinently, voting against the Prime Minister is conducted via an open ballot. The motion is considered successful, that is no confidence of the house in the Prime Minister, if the voting tilts towards a simple majority i.e. 172 of the total 342 members vote in favour of removing the Premier.

READ MORE: Tax reduced on POL products to ease inflation: PM Imran

Once the decision comes through and the result against the Prime Minister is submitted by the speaker to the President in writing, he shall cease to hold power, effective immediately, while the cabinet of the PM is also dissolved instantaneously. Moreover, the National Assembly is then required to immediately suggest and a vote upon a new PM.

March 9, 2022
FBR, PTA introduce temporary registration of cell phones

ISLAMABAD: Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) have jointly introduced a temporary registration of cell phones to facilitate overseas Pakistanis.

To address the repeated concerns raised by Overseas Pakistanis (including those working abroad or Pakistani students studying overseas) and foreign nationals visiting Pakistan on short term visits regarding blocking of their mobile devices via DIRBS, FBR and PTA have jointly developed a new system for their temporary registration in collaboration with Federal Investigation Agency (FIA) and Mobile Phone Operators, a statement said on Tuesday.

READ MORE: PM Imran directs implementing incentives for IT industry

This module has been introduced for those overseas Pakistanis and foreign nationals who do not intend to keep their mobile device in Pakistan and will be applicable for only one (1) mobile handset device.

To avail this facility, the applicant shall provide his/her credentials including passport No., date of arrival and intended date of departure, mobile SIM issued in his/her name, and IMEI(s) of the device.

READ MORE: Ufone 4G ranked top voice and data network

The new system shall carry out real time validation from FIA IBMS to verify the date of arrival of the applicant. On lapse of 120 days of the stay of the applicant, the IMEI(s) utilized under this facilitation shall be suspended and swill not be utilized on local network services. In case, same applicant visits Pakistan again, he/she will be required to re-apply for this temporary facilitation, by re-entering the credentials which were used for the 1st or previous registration under this scheme.

This system will not only facilitate overseas Pakistanis and foreign nationals coming to Pakistan on short term basis but will also create a positive image of the country. Likewise, the checks introduced under this system will ensure that only the genuine overseas Pakistani/foreign national avails the said facility.

READ MORE: Supernet wins ZTBL projects worth Rs450 million

It is pertinent to mention that FBR has already introduced a number of innovative digital interventions to ensure taxpayers facilitation and ease of doing business through technology. In the recent past, the country’s premier revenue collection organisation has collaborated with FIA and NADRA in developing an automated facility for Currency Declaration at ports to fight the menace of money laundering and thereby rule out the possible flight of foreign currency from Pakistan.

Therefore, the above initiative comes as yet another wonderful step taken by FBR to maximize taxpayers facilitation, in particular, the Overseas Pakistanis and Foreign Nationals visiting Pakistan for a short period of time.

READ MORE: PM Imran announces setting up technology startup fund

March 8, 2022
ECC approves Ramzan relief package worth Rs8.28 bn

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a Relief Package worth Rs8.28 billion to provide essential items at subsidized rates during the holy month of Ramzan.

The ECC approved a summary tabled by Ministry of Industries and Production for Ramzan Relief Package 2022.

The ECC after discussion approved Ramzan Relief Package 2022 for 19 essential items to be sold at subsidized rates at Utility Stores Corporation (USC) with total subsidy of Rs. 8.28 billion.

READ MORE: PM Imran reduces, freezes POL prices

Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting.

Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Railways Muhammad Azam Khan Swati, Federal Minister for Energy Hammad Azhar, Federal Secretaries and senior officers attended the meeting.

ECC approved Kamyab Overseas Programme (KOP) as a new component of Kamyab Pakistan Programme. The new initiative is meant for prospective low income overseas workers having confirmed foreign job offer, employment agreement and valid travel documents and registered with NSER to avail interest free loans under KPP.

READ MORE: PM Imran announces setting up technology startup fund

Maximum amount of loan would be Rs. 300,000 and returned in easy installments starting after three months of departure. The loan will be provided to 10,180 beneficiaries with estimated required funds of Rs. 3 billion for the 4th quarter of 2021-2022.

ECC considered and approved a summary presented by Ministry of Commerce on proposed amendments in the import and export policy order 2020 for the development of Integrated Tariff Management System (ITMS) for Pakistan Single Window (PSW).

Ministry of Energy (Petroleum Division) submitted a summary for allocation of Gas from Togh Field on commercial basis.

The ECC after discussion allowed up to 16 MMCFD gas from Togh Field to SNGPL on commercial basis. The wellhead price of the gas will be decided by the concerned regulator under the applicable rules and policy. Ministry of Energy (Petroleum Division) submitted a summary to allow amending the Petroleum Concession Agreement, allowing GHPL Assignment of Working interest in Wali, Jandaran West, Saruna and Pesu block of OGDCL.

The ECC approved to amend the respective Petroleum Concession Agreements by allowing GHPL to increase its Working Interest above its statutory Working Interest of 2.5 per cent being state participator in Wali, Jandran West,Saruna and Pesu blocks of OGDCL.

Ministry of Energy (Power Division) submitted a summary on incentive package announced by the Prime Minister regarding reduction in price of electricity.

The ECC considered and approved PM’s relief package of Rs. 5 per unit by way of reduction in electricity charges base rate for the relief period of four months (March 2022 to June 2022).

The relief package will be applicable to all commercial and domestic non- ToU consumers having monthly consumption up to 700 units, excluding life-line consumers.

The cash flow requirement for the PM Relief Package is Rs. 136 billion. Ministry of Energy (Petroleum Division) submitted another summary on reimbursement of price differential claims of oil marketing companies (OMCs) and refineries, in line with PM relief package of reduction in the consumer prices of Motor Spirit and Diesel by Rs. 10 per litre. The price differential would be paid to the Oil Marketing Companies/ Refineries by the Government as a subsidy to avert any shortage in the market.

The ECC approved special PDC disbursement mechanism to pay the PDC speedily within 15 days, opening of special assignment account with PSO and initial amount of Rs20 billion to PSO in accordance with the mechanism.

The ECC also considered and approved following Technical Supplementary/ Supplementary Grants:

i. Rs. 428.90 million to Foreign Affairs Division to meet the expenditure for holding of 48th session of the OIC Council of Foreign Ministers to be held in Islamabad on 22-23 March, 2022.

ii. Rs. 47.561 million to poverty Alleviation and Social Safety Division.

iii. Rs. 135.078 billion for principal and interest payments against Naya Pakistan Certificates and Islamic Naya Pakistan Certificates.

March 7, 2022
FBR allows 20-year old house value to open plot

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the value of immovable property constructed more than 20 years equal to the value of open plot.

According to property valuation for Karachi issued through SRO 345(I)/2022, the FBR issued a fresh property valuation for the residential and open plots located in various parts of the city.

READ MORE: FBR re-notifies valuation of immovable properties

The property registrar of the provincial government will collect withholding tax on the behalf of the FBR on the basis of property valuation fixed by the federal tax authority.

The FBR allowed reduction in valuation of properties on the basis of age of the built up structure.

It said that the value of residential built up property (including basement and first floor) is allowed to be reduced according to the following criteria:

01. Age of built up structure up to five years: no reduction is allowed in value.

02. Age of built up structure between five to 10 years: five per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 15 years: 7.5 per cent has been allowed as reduction in value.

04. Age of built up structure between 15 to 20 years: 10 per cent has been allowed as reduction in value.

05. Age of built up structure more than 20 years: the value shall be equal to an open plot.

The FBR further allowed reduction in value of built up properties (flats and apartments) according to following criteria:

01. Age of built up structure up to five years: no reduction will be allowed in value.

02. Age of built up structure between five to 10 years: 10 per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 20 years: 20 per cent has been allowed as reduction in value.

04. Age of built up structure between 20 to 30 years: 30 per cent has been allowed as reduction in value.

05. Age of built up structure more than 30 years: 50 per cent has been allowed as reduction in value.

The FBR also allowed reduction in value of commercial built up property according to the following criteria:

01. Age of built up structure up to 10 years: no reduction is allowed.

02. Age of built up structure between 10 to 15 years: 5 per cent has been allowed as reduction in value.

03. Age of built up structure between 15 to 20 years: 8 per cent has been allowed as reduction in value.

04. Age of built up structure more than 20 years: 10 per cent has been allowed as reduction in value.

The FBR said that the value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10 per cent.

The value of commercial built up excluding ground floor has been reduced by 25 per cent.

The value of Residential Plots (Defence Housing Authority) of following categories may be decreased by 25 per cent:-

01. Nala facing plot

02. Commercial facing plot

03. School facing, mosque facing plot/Graveyard facing plot.

04. Rear plot (Back Side plot)/Triangle plot

For further details download new FBR’s property valuation for Karachi city.

March 7, 2022

FBR re-notifies valuation of immovable properties

ISLAMABAD: The Federal Board of Revenue (FBR) has re-notified fresh and revised valuation of immovable properties.

The FBR on March 02, 2022 issued re-notified the valuation tables of immovable properties for major cities of the country.

The revenue body decision to defer the implementation came after several complaints received by the FBR those were pertaining to high valuation in the new tables.

The complaints were lodged by stakeholders including real estate agents and town developers, who pointed out extraordinary rise in property rates in the latest valuation tables.

The FBR issued detailed instructions to the tax offices 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.

The FBR asked all the Chief Commissioners Inland Revenue (CCIRs) to 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 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.

To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.

However, certain objections from stakeholders highlighted 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.

Following are the valuation tables re-notified by the FBR:

PM Imran directs implementing incentives for IT industry

ISLAMABAD: Prime Minister Imran Khan on Friday directed the authorities to timely implement incentives for freelancers and IT industry as announced by the government.

The prime minister, chairing a meeting to review the incentives being provided to the IT sector, said the government was extending maximum facilitation to the sectors with immense potential to support the national economy.

READ MORE: PM Imran reduces, freezes POL prices

Mentioning the historic package announced by the government for promotion of the IT sector, he said the government had introduced massive reforms to facilitate the business sector.

He viewed that the facilitation of the skilled freelancers would lead to increasing the remittances as promotion of the IT exports was among the government’s priorities.

The participants of the meeting were apprised of the implementation status of the incentives for the startups, industrial sector and IT companies.

READ MORE: PM Imran announces setting up technology startup fund

It was told the implementation of the government’s recently announced industries and IT package was going on with fast pace and an increase in the number of freelancers had been witnessed consequent to the government’s measures.

The meeting was told that the one-step registration of freelancers through the portal of Pakistan Software Export Board had been ensured which would automatically register them with the Federal Board of Revenue.

READ MORE: Tax reduced on POL products to ease inflation: PM Imran

Moreover, the State Bank of Pakistan was also taking steps to ensure the transfer of freelancing funds from abroad through the banking channels. Besides, a mechanism to take benefit from the tax exemptions for the IT companies would also be in place very soon.

An awareness system to ensure the implementation of the announced facilities through commercial banks would also be initiated.

READ MORE: PM Imran launches 2nd phase of Raast payment system

Federal ministers Asad Umar, Hammad Azhar, Chairman of Special Technology Zones Authority Amer Hashmi, and senior officers attended the meeting. Governor of State Bank Raza Baqir joined via video link.

March 5, 2022