| Islamabad: The Federal Tax Ombudsman (FTO) has concluded its investigation and issued recommendations to the Federal Board of Revenue (FBR) regarding the real estate sector in the Bahawalpur region of Pakistan, according to news published on September 21. The FTO conducted four Own Motion investigations focused on the valuation of Real Estate in various areas, including Bahawalpur, Bahawalnagar, Lodhran, and Rahim Yar Khan.
Read: FBR introduces penalties on cash transactions in real estate sector
The investigations revealed certain deficiencies in the valuation of properties falling under different categories, such as agricultural land, private housing societies, commercial plots/buildings, and farmhouses. The current valuation process for immovable property is being conducted by tax officials as part of the Pakistan Raises Revenue Projects (PRRO) under the guidance of the World Bank. The objective is to establish a uniform valuation table for immovable properties, which is an ongoing process periodically reviewed by the respective Regional Tax Offices (RTOs).
The FBR issued SRO1269(I)/2022 on 1st August 2022, based on recommendations from RTO Bahawalpur, in consultation with relevant District Revenue Authorities. These rates were proposed to align the valuation tables with prevailing market rates. However, it was noted that in some instances, District Revenue Authorities faced constraints in revising property valuations beyond a certain percentage due to restrictions imposed by the Punjab Revenue Board.
Read: Tax offices to observe extended working hours on September 30: FBR
In light of these findings, the FTO has recommended that RTO Bahawalpur should remain vigilant in monitoring prevailing market rates in the real estate sector. They should periodically revisit the proposed rates for immovable properties to ensure they remain in line with current market conditions. Additionally, the FBR Policy wing (IR) should promptly notify any additions and amendments proposed by RTO Bahawalpur to address these issues effectively. |
|
