FTO to Reform FBR’s Property Valuation Mechanisms Nationwide
Islamabad: According to the news published on October 27, 2023, the Federal Tax Ombudsman (FTO) has decided to reform the property valuation systems of the Federal Board of Revenue’s (FBR) identified systemic weaknesses. The initiative will significantly affect property assessments nationwide and has advocated for revisions.
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As per officials, the extensive research conducted by the FTO has disclosed many flaws, abnormalities, and contradictions in the FBR’s property value table. These inconveniences have led to the urge for quick revisions of property valuation systems nationwide. Moreover, they have also queried and highlighted severe problems impacting the FBR’s property assessment operations nationwide.
The FTO also examined numerous concerns about the immovable property valuation tables, revealing systemic issues. These estimates have raised concerns about the accuracy and fairness of property assessments by FBR. The Federal Tax Ombudsman’s conclusions have highlighted the absence of uniform property valuation procedures in crucial urban areas, with trillions worth of properties at risk.
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A primary concern was the lack of a trustworthy framework for valuing immovable property, particularly in metropolitan areas. Furthermore, the research revealed that the Directorate General of Immovable Property (IMP) was formed by a parliamentary law in 2018 to tap into the potential of the real estate industry. However, because of this law, the sector remained inactive, which resulted in inefficiencies in property assessment.
Furthermore, the investigation pointed out that the Directorate General of Immovable Property (IMP) was established by a parliamentary law in 2018 to tap into the real estate sector’s potential. This law became the reason for non-operation, contributing to the inefficiencies in property valuation. The FTO’s analysis revealed significant anomalies, inconsistencies, infirmities, and conflicts in the FBR’s Statutory Regulatory Orders (SROs).
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These flaws have resulted in improper valuation, undervaluation, overvaluation, and arbitrary power exercise, creating questions about openness and fairness in real estate transactions. The FTO has suggested rapid reforms, such as activating the Directorate General of Immovable Property and developing a standardized property valuation methodology.
Standing anomalous committees and the appointment of qualified valuers have also been proposed to resolve stakeholders’ complaints and assure the accuracy of property assessments. The FTO’s request for change aims to address these challenges and create a more transparent and efficient property valuation system countrywide.
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