In a strategic initiative aimed at enhancing tax collection and ensuring fair market valuation, the Federal Board of Revenue (FBR) has revised the valuation of properties in the Gwadar region. The move, outlined in the SRO 1271(I)/2022 dated August 01, 2022, represents a crucial step in aligning property valuations with current market dynamics.
Exercising its powers under sub-section (4) of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001), the FBR has superseded its previous Notification No. S.R.O. 339(I)/2022, dated the 2nd day of March, 2022. The revised fair market values for immovable properties in Gwadar have been specified in columns (3), (4), (5), (6), (7), and (8) of the issued table.
The decision to revise property valuations in Gwadar holds significant implications for real estate transactions in the region. As the FBR plays a crucial role in collecting withholding income tax on the sale and purchase of immovable properties under Section 236C and Section 236K of the Income Tax Ordinance, 2001, this move is expected to streamline tax assessment processes and contribute to increased revenue.
The tax rate for both buyers and sellers of immovable properties in Gwadar is set at 2%, following an enhancement from 1% to 2% through the Finance Act, 2022. This adjustment reflects the government’s commitment to fortifying its revenue streams and maintaining fiscal equilibrium.
It’s worth noting that the tax payment for individuals not appearing on the Active Taxpayers List (ATL) issued by the FBR will be higher. This aspect underscores the government’s broader strategy to incentivize tax compliance and discourage tax evasion.
Gwadar, a port city with strategic significance due to the China-Pakistan Economic Corridor (CPEC), has witnessed increased real estate activities in recent years. The revised property valuations are poised to capture the evolving market dynamics and ensure that tax collections accurately reflect the fair market values of the properties involved.
The FBR’s approach in leveraging its regulatory powers to adjust property valuations indicates a proactive stance in responding to the evolving economic landscape. By keeping property valuations in sync with market realities, the FBR aims to strike a balance between facilitating real estate transactions and ensuring a fair contribution to the national exchequer.
As stakeholders in the real estate sector adapt to these revised valuations, there is a potential for increased transparency and efficiency in property transactions. The move is likely to be viewed as a positive step toward creating a more robust and accountable real estate market in Gwadar, aligning with the government’s broader economic goals and fiscal responsibilities. The impact of these revisions will unfold in the coming months, shedding light on how they influence real estate dynamics and tax collections in the region.
