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Federal Board of Revenue, realtors clinch property New valuation deal

Pakistani Finance Minister, Ishaq Dar holds up a copy of the Economic Survey of Pakistan for the financial year 2012-13 at a press conference in Islamabad on June 11, 2013. The newly elected democratic government is all set to present its very first Federal Budget of about Pakistan rupees 3.4 trillion for the fiscal year 2013-14. AFP PHOTO/Farooq NAEEM

ISLAMABAD( Web Desk): According to Media The Federal Board of Revenue (FBR) and realty Stakeholders  and FBR also agreed on new tax rates, and the FBR accepted suggestions on the process of property valuation that were given by the industry stakeholders. Media Said,

This decisions were taken during  meeting between government  and property stakeholders, chaired by Minister of Finance  Ishaq Dar.

The task of determining a property’s real market price will now be carried out by the The Federal Board of Revenue. Earlier, the task was given to professional evaluators approved by the (SBP) State Bank of Pakistan .

According to media Saturday’s meeting also approved the upward revision of the valuation table for property prices in 18 main cities of pakistan .

New valuation tables have been issued for major 10 cities in Punjab: Lahore, Gujranwala, Rawalpindi, Jhelum, Gujrat, Faisalabad, Sialkot,  Rahim Yar Khan  , Multan, and Bahawalpur; 3 Cities in Sindh: Karachi, Sukkur and Hyderabad ; 2 cities in Khyber Pakhtunkhwa and Balochistan: Abbottabad and Peshawar; and, Gwadar and  Quetta . A revision was also approved for Islamabad, where rates had remained same and no changed since 2004.

According to officials ,The deputy commissioner (DC) has been approved rate of property in Lahore Main City and cities in Khyber Pakhtunkhwa are closer to the market value as compared to other cities in the pakistan,

 The official added said the bulk of the work was done on the new valuation tables of  Rawalpindi Islamabad and Karachi, which are the main cities where the real estate business are working more then others cities . “ the officials also added that We are working on different  formulas city-wise while looking at existing DC rates,”

Mr Dar told reporters after the meeting that We have removed the major discrepancies in values of property determined by both sides,”.

Mr Dar also said to the media channels that for those areas where no  new valuation tables had been notified, the Deputy Commissioner Rates will apply. the New valuation tables will be used for the purpose of calculating Capital Gains Tax (CGT), withholding taxes and for the purposes of Section -111- of the Income Tax Ordinance 2001.

In a main relief for real estate businessman,s , the government of pakistan  has reduced the holding period of property from 5 years to 3 years for CGT-exemption. No CGT will apply on a property held for more than 3 years.

To further facilitate real estate Businessman’s, the government has introduced three slabs, effective from July 1, 2016, on properties.

Minister of Finance  Ishaq Dar said the  New valuation tables would be effective until June 2017. We will announce new valuation tables with the next budget,

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