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,