Builders’ committee and FBR could not reach any consensus on valuation issue

Builders’ committee and FBR could not reach any consensus on valuation issue

KARACHI: The meeting of the 13-members committee of Builders and Developers with Haroon Akhtar Khan, advisor to the Prime Minister and member policy Federal Board of Revenue (FBR) was held at FBR office Islamabad on Thursday, but they could not reach any consensus on valuation issue of plots or land and they decided to hold another meeting on Friday.

President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Rauf Alam, informed that the meeting was held today in the FBR office with Haroon Akhtar and other members of the FBR and we discussed all the hurdles faced by the real estate stakeholders.

The Federal Board of Revenue (FBR) and property dealers are expected to strike a consensus on jacking up the DC rates up to 50 percent in one go during the upcoming round of parley which will start on Friday at the Board’s headquarters, he added.

The official value may be jacked up by 40 percent to 50 percent, Rauf Alam informed. He said that FBR Chairman Nisar Mohammad Khan has to go Dubai on Sunday to attend IMF conference and he may resolve the issue before going to abroad.

An official of the FBR said that the FBR has completed its homework to devise revised fair market value for total 21 cities and now the property dealers have been invited for discussing their valuation tables and reconcile with the FBR authorities. “We are making efforts to resolve this lingering issue on Friday but it will depend upon possibility of evolving consensus on formula acceptable to all stakeholders,” he added.

Hanif Gohar, chairman Association of Builders and Developers (ABAD) said that he had tabled his suggestions, in which he asked the finance minister to increase the DC Value up to 50 per cent of the previous value to stop the corruption in the valuation mechanism but on the other side, the government should cut the Capital Gain Tax (CGT) on the transfer of the property from 10 percent to 5 per cent and Regulatory Duty up to one per cent.

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