FTO instructs FBR to use real-time valuations for posh housing

he Federal Tax Ombudsman (FTO) has instructed the Federal Board of Revenue (FBR) to revise the property valuation table to reflect real-time market rates, especially for housing schemes in affluent areas. The FTO initiated an investigation on its own motion after receiving complaints about discrepancies and deficiencies in the current valuation table, which was issued in August 2022.

The investigation found that the current valuation table does not include the cost of built-up structures and does not clearly distinguish between residential, commercial, and agricultural properties. Additionally, certain residential schemes announced by real estate developers have not been included in the valuation table.

The FTO has directed the FBR to work with the Regional Tax Office (RTO) in Multan to revise the valuation table and address the deficiencies that have been identified. The FBR has also been instructed to ensure that the valuation table is updated regularly to reflect changes in market conditions.

The FTO's directive is a positive step towards improving transparency and accountability in the real estate sector. It is also expected to generate additional revenue for the government.