ISLAMABAD: New property valuations issued by Federal Board of Revenue (FBR) has started yield results, as 36 percent growth has been registered in collection of taxes on sale/purchase of properties.
Seeing the output, the FBR has observed that trading in property sector is increasing gradually after a halt, which come due to the new valuations of properties. Therefore, Chairman Nisar Muhammad Khan has decided not to review the latest values.
Sources said that the board collected Rs 2326 million under two heads of property valuation tax i.e. 236 C (Seller) and 236 K (buyer) from July 1 to October 21 of running fiscal year 2016-17.
During same corresponding of last year 2015-16, it collected Rs 1712 million, including Rs 652 million under the head of seller and Rs 1120 million in wake of 236 K.
As per details, the FBR collected Rs 464 million from sellers and Rs 209 million from buyers during first 21 days of October 2016, besides generating Rs 1653 million under both heads during first quarters of the year.
The sources revealed that the board could collect Rs 20-30 billion from property sector instead of Rs 100 billion during the running fiscal year, adding that the Karachi Regional Tax Offices (RTOs) chief commissioners have been directed to remain in contact with builders in order to ensure the timely collection of taxes on sale/purchase of plots.
It is pertinent to mention here that earlier, there were rumours that the government is considering revising the valuation rates of properties downwards after administrators termed them too high.
