| Islamabad: The Federal Tax Ombudsman (FTO) has exposed systemic flaws in the Federal Board of Revenue’s (FBR) property valuation mechanisms, impacting property assessments nationwide and has urged reforms, according to news published on October 25.
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An in-depth investigation by the FTO has revealed discrepancies, anomalies, and inconsistencies in FBR’s property valuation tables, prompting the call for immediate reforms. A recent investigation by the FTO has shed light on significant issues plaguing the FBR’s property valuation procedures across the country. The FTO’s examination encompassed various valuation tables of immovable properties, highlighting systemic problems that have raised concerns about the accuracy and fairness of property assessments.
The FTO’s findings revealed a lack of a standardized property valuation mechanism in major urban centres, where properties valued at trillions of rupees are at stake. One of the key issues identified was the absence of a reliable framework for valuing immovable properties, particularly in urban areas.
Furthermore, the investigation pointed out that the Directorate General of Immovable Property (IMP), established by a parliamentary law in 2018 to tap into the real estate sector’s potential, remained non-operational, contributing to the inefficiencies in property valuation.
The FTO’s report emphasized the presence of anomalies, inconsistencies, infirmities, and discrepancies in various Statutory Regulatory Orders (SROs) issued by the FBR. These issues have led to inappropriate valuation, undervaluation, overvaluation, and arbitrary exercise of powers, raising concerns about transparency and fairness in property transactions.
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The FTO has recommended immediate reforms, including the activation of the Directorate General of Immovable Property and the development of a standardized mechanism for property valuation.
The introduction of standing anomaly committees and the hiring of competent valuers have also been suggested to address the concerns of stakeholders and ensure the accuracy of property assessments. The FTO’s call for reform aims to rectify these issues and establish a more transparent and efficient property valuation system nationwide. |
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