Shaukat Tarin asks FBR to extend the deadline

Evaluation of the property of the representative image. Photo: Stock/Folder
  • Shaukat Tarin orders FBR to extend the deadline for implementing the revised property assessment rates.
  • FBR must first gain the trust of all stakeholders, says Tarin.
  • The real estate industry wants property valuation to be delegated to the provinces in their respective regions.

ISLAMABAD: Federal Finance Minister Shaukat Tarin has ordered the Federal Board of Revenue to extend the deadline for implementing revised property assessment rates in 40 urban cities until March 1, 2022.

The RBF must first gain the trust of all stakeholders, including the provinces, before establishing assessment rates for the whole country, Tarin said.

Tarin made the decision during a meeting on Wednesday with a delegation from the Real Estate Consultants Association (RECA) led by Ahsan Malik in the finance division.

RECA Secretary General Ahsan Malik said The news that Tarin listened to all their concerns and assured them that they would be resolved amicably. The real estate industry wants a single national assessment rate rather than three separate rates, including DC’s notified assessment rate in their respective areas, FBR rates, and market rates.

The real estate industry wants property valuation to be delegated to the provinces in their respective regions. However, the World Bank’s $400 million loan under the Pakistan Raises Revenues Initiative includes a requirement that RBF valuation rates be updated to reflect market rates.

It remains to be seen how the FBR will make further increases to the assessment rates used to calculate the FBR fees. Real estate moguls argued that it would be difficult to enforce the exorbitant valuation rates as it would end the boom in the sector. It will become more difficult for buyers to demonstrate all of their white silver and, in some cases, silver to an extent inconsistent with market prices.

According to real estate representatives, this would deter genuine buyers who would prefer to sell land in their own name. They asked how the FBR would handle situations in which files were sold but no transaction took place before the registration authorities.

Previously, RBF extended the deadline for implementing revised property assessment rates in 40 major urban areas by postponing its notification to January 31, 2022. RBF increased assessment rates up to 700% in 40 cities different via an official notification published on December 1st. , 2021, sparking protests across the country.