ISLAMABAD: Despite developing consensus on fair market value of properties in 20 cities across the country, the deadlock between Federal Board of Revenue and real estate sector representatives remained on determination of property values in Karachi.
Advisor to Prime Minister on Revenue Haroon Akhtar Khan, FBR Chairman Nisar Muhammad Khan, Inland Revenue-Policy Member Rehmatullah Khan Wazir, IT and Budget Secretary Qazi Hifz ur Rehman, SRO Secretary Syed Hassan Sardar held discussion with the representatives of the real estate sector on Friday.
FBR sources informed the scribe that the real estate sector was not ready to increase official property rates according to the current market rate, adding that the FBR wanted minimum an increase of 50 percent in the official rates.
The real estate sector representatives are presenting low values of properties in Karachi, Lahore and Islamabad as compared to the ‘official rates’. The ranges of revaluation will be around 35 minimum to 400 to 500 percent maximum depending on location of posh areas such as plots located in DHA and other housing schemes, the revaluation will be considerably enhanced by 400 to 500 percent.
The FBR has agreed with the market rates provided by the real estate sector in other cities including Rawalpindi, Jhelum, Gujranwala, Gujrat, Sialkot, Faisalabad, Multan, Rahim Yar Khan, Bahawalpur, Hyderabad, Sukkur, Peshawar and Abbotabad, Quetta and Gwadar.
The official sources said that the government may promulgate a Presidential Ordinance to give real estate sector a comprehensive package, if the revenue authority and property sector representatives develop a consensus on the valuation.
The FBR may unveil an amnesty scheme for regularising past transaction of property by imposing fixed tax within the range of 2 to 3 percent.
Special Assistant to PM on Revenues Haroon Akhtar Khan is optimistic about the today’s meeting and expecting an agreement between both sides.
