The Federal Board of Revenue (FBR) has opted to postpone the implementation of valuation tables for immovable properties following concerns raised by various stakeholders.
The decision, communicated through different Statutory Regulatory Orders (SROs), reflects the FBR’s commitment to addressing anomalies and ensuring a fair and accurate valuation process.
In an office memorandum, the FBR acknowledged the consultative process undertaken to establish valuation tables for immovable properties in 40 cities. While the FBR asserted that the notified valuations had undergone a rigorous consultative process and were generally well-received, the board admitted the possibility of errors and anomalies.
To rectify any discrepancies, the FBR announced a comprehensive review and revisit of the notified valuation tables, particularly in cases where stakeholders identified overvaluation or undervaluation concerns. The outlined procedure for this review is as follows:
1. Formation of Valuation Review Committees (VRCs): All Chief Commissioners Inland Revenue (CCIRs) were instructed to constitute Valuation Review Committees by December 10, 2021.
2. Stakeholder Representation: Stakeholders with reservations about valuations were given the opportunity to lodge representations before the VRCs by December 15, 2021.
3. Consultative Process: Chief Commissioners were tasked with engaging in a consultative process with stakeholders and involving State Bank of Pakistan’s (SBP) approved valuers to determine values. This process aimed to address concerns and ensure a more accurate reflection of property values.
4. VRC Decision: The Valuation Review Committees were expected to decide on the representations by January 10, 2022, and forward their decisions to the FBR for notification.
5. Re-Notification of Values: All recommendations made by the VRCs regarding revaluations were to be re-notified on January 15, 2022. The revised valuations would come into force on January 16, 2022.
Additionally, during the interim period, the FBR announced that SRO No.1534-1572(I)/2021 dated 01.12.2021 would be held in abeyance. This decision was made to allow the registration of transactions that were already in process, offering a measure of flexibility and accommodation during the review period.
The FBR’s decision to delay the implementation of the valuation tables demonstrates a responsiveness to stakeholder concerns and a commitment to ensuring a fair and transparent valuation process for immovable properties. This consultative and adaptive approach aligns with the government’s broader objectives of promoting good governance and addressing issues proactively in collaboration with stakeholders.
As the review process unfolds, the FBR aims to enhance the accuracy and credibility of property valuations, fostering a more robust and reliable system for determining the values of immovable properties across various cities in Pakistan.
