According to news released on September 21, the Federal Tax Ombudsman (FTO) has completed its inquiry and provided suggestions to the Federal Board of Revenue (FBR) concerning the real estate industry in the Bahawalpur region of Pakistan.
The FTO initiated four independent investigations examining the appraisal of real estate in different locations, such as Bahawalpur, Bahawalnagar, Lodhran, and Rahim Yar Khan.
The inquiries uncovered specific inadequacies in appraising properties belonging to diverse categories, including agricultural land, private housing developments, commercial plots/buildings, and farmhouses. Presently, the assessment of immovable property is being carried out by tax authorities.
The component of the Pakistan Raises Revenue Projects (PRRO) initiative, is overseen in collaboration with the World Bank. The aim is to formulate a consistent valuation table for immovable properties, and this endeavor is continually reviewed at regular intervals by the respective Regional Tax Offices (RTOs).
On August 1, 2022, the FBR implemented SRO1269(I)/2022, following advice from RTO Bahawalpur and discussions with pertinent District Revenue Authorities. The objective was to synchronize the valuation tables with the existing market rates. Nonetheless, it was observed that in specific cases, District Revenue Authorities encountered limitations in adjusting property valuations beyond a certain percentage, owing to restrictions set forth by the Punjab Revenue Board.
Given these discoveries, the FTO has advised RTO Bahawalpur to maintain a diligent watch on the ongoing market rates within the real estate sector. It’s suggested that they regularly reassess the suggested rates for immovable properties to guarantee their alignment with the present market dynamics. Additionally, the FBR Policy wing (IR) should promptly notify of any additions and amendments proposed by RTO Bahawalpur to address these issues effectively.
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