Realtors announce to hold protests at Faizabad and Islamabad Expressway on December 10
Islamabad real estate business community have threatened protests at Faizabad and Islamabad Expressway on December 10 against the recent property valuation by the Federal Board of Revenue (FBR).
The Federation of Realtors Pakistan and the Islamabad Estate Agents Association president, Sardar Tahir Mehmood, said the FBR revision is akin to abolishing the construction package announced by the government. He claimed that the tax collecting body was causing financial damage to the real estate sector.
“These rates have been revised without consulting the stakeholders, which is totally unrealistic. The rates have been revised by non-professional FBR officers who are not aware of ground realities,” Mehmood was quoted as saying by Dawn.
Realtors criticize the move
The value of property rates in Islamabad had been jacked manifolds only in Islamabad, making it difficult for the buyers to register new property in their names, they said. The realtors warned of a nationwide protest on December 10 if the government did not take the decision back.
Rawalpindi Chamber of Commerce and Industry (RCCI) President Nadeem Rauf said that the proposed increase in taxes and valuation will increase the registry fees from Rs500,000 registry to up to Rs2.5 million.
“The FBR’s move of new market value for the immovable property of 40 major cities was tantamount to stalling the country’s economy and suspending business activities,” the RCCT said in a statement.
Property valuation rate spike
Valuation rates of immovable properties have been raised by the FBR from 100 to 600 percent in 40 major cities, depending upon location and commercial areas within the cities, according to The News.
FBR said that the values of all residential and commercial immovable properties of Pakistan have been revised increased to bring them at par with the fair market values. The detailed revised list of property valuations in 40 cities can be accessed here.
Following the objection from realtors, FBR responded that “The recently notified property valuation was finalized through a consultative process” but the tax body said it is ready to review instances of valuation beyond the market price in consultation with the key stakeholders.