KARACHI: The Federal Board of Revenue (FBR) has suspended appraisals of new properties until Jan. 16 to review anomalies identified by key stakeholders, an official said Tuesday.
“He has decided to review and revise the notified valuation tables whenever an overvaluation or undervaluation is reported by stakeholders, including real estate agents and developers in the city,” the official said. . “All Inland Revenue Chief Commissioners must form Valuation Review Committees (VRCs) and notify them by December 10, 2021.”
On Monday, a Senate Standing Committee on Finance and Revenue ordered the FBR to revise the new assessment after consultation with stakeholders within 15 days.
“Any stakeholder with concerns about the assessments may file a representation with VRC by December 15, 2021,” the spokesperson said.
“The Chief Stewards will undertake a meaningful consultation process with stakeholders and engage SBP’s Chartered Appraisers in determining values, which may be higher or lower than recently notified valuations.”
The FBR has taken cognizance of a number of complaints received from across the country from various stakeholders, including about the extraordinary increase in real estate prices as a result of the recently notified land valuation.
It therefore issued detailed instructions on Tuesday through an Office Memorandum (OM) on how to review anomalies in property rates and rationalize them.
The FBR released new property valuation tables in 40 major cities on December 1 to bring them closer to real market prices.
“Although the notified assessments were obtained by the RBF field formations through a rigorous consultation process and were therefore widely welcomed, the possibility of error cannot, however, be ruled out, and the same cannot be considered set in stone,” the FBR said.
He added that the VRCs will decide on the representations by January 10 and forward them to the FBR for notification. All recommendations made by the VRCs vis-à-vis the reassessments will be renotified on January 15, which will take effect from January 16.
“In the meantime, SRO n°1534-1572(I)/2021 of 01.12.2021 [the new property valuation] are suspended to allow recording of ongoing transactions,” the FBR added. Therefore, according to an official of the FBR, real estate transactions that take place until January 15 will fall under the previous land assessment of the FBR.