ISLAMABAD : August 6,2023: After a marathon discussion for 5 hours , the government has agreed to constitute a
committee to workout evaluation table to assess the value of immovable properties and sort out thorny issue of Section 7E compliance.
According to reliable sources , FBR will notify the committee to assess value of immovable properties as per procedure laid down in Section 7E.
Meanwhile , the Federal Board of Revenue (FBR) has issued a following statement for information of all concerned parties.
It said at the directives of Minister for Finance and Revenue, issued during the 90th meeting of National Assembly Standing Committee on Finance and Revenue held on 4th August, 2023, a meeting was held at FBR Headquarters, Islamabad, to address and resolve taxation issues concerning real-estate transactions.
The meeting was presided by the Chairman FBR, Mr. Malik Amjed Zubair Tiwana and attended by the delegation of Realtors led by Mr. Sardar Tahir Mehmood, President Federation of Realtors Pakistan, and the team of FBR officers.
Realtors’ delegates emphasised the need to rationalize taxation of immovable property in the backdrop of poor health of the economy. They stressed that real estate sector has been the major source of domestic and foreign investment in the past, however, deteriorating economic conditions have pushed people away from investment in this sector. They also asserted that taxation measures on immovable property introduced through Finance Act, 2022 & Finance Act, 2023 have created a discouraging environment for investment in real estate sector.
The delegation proposed abolition of tax on deemed income from immovable property. They also requested that there be either no revision of valuation table of the properties for the time being, or increase, if any must be made, at fair level after consultation with the stakeholders.
FBR agrees to automate Section 7 E compliance procedure. The realtors do not want its implementation at least for the current fiscal.
Chairman FBR assured the participants that their concerns will be addressed and best possible facilitation will be ensured for removing difficulties arising on account of implementation of tax laws. He directed his team to ensure proper coordination and consultations with the Realtors in this regard. The Chairman further pointed out that under the Stand-by Arrangement with IMF, any new tax exemption, concession or preferential tax treatment may not be possible at this time.
Sardar Tahir Mahmood spoke to NEWSMAN on the issue on Sunday. He said the realtors team is working closely with FBR to find some acceptable formula to remove distrust among the parties. He said the realtors position on the evaluation assessment is very clear that there should be no revision in assessment of value of the properties in the current fiscal year as this sector was already in trouble due to downfall in the prices of properties up to 30 to 35 percent in recent months and any upward revision in evaluation table will destroy this key sector altogether.
