For many months now, the government has been looking to raise FBR property valuation rates to equal the market value of their corresponding properties. So the following measures have been proposed in the current budget for inching closer towards the realisation of this end:
- FBR valuations of properties will be raised to 85% of their market values.
- Previously, property owners had been allowed to register their immovable assets by paying a 3% additional tax rate on the monetary difference between their DC rates and their FBR rates. This ‘amnesty scheme’ provision was announced after the introduction of the FBR rates during the tenure of the former government. On a practical footing, this allowance meant that a property holder was no longer required to explain the source of funding of the difference amount between the DC value and the FBR value of a particular piece of real estate – after payment of the 3% additional tax rate on this figure had been deposited.
This ‘white washing’ caveat (documentary loophole, if you will) now stands withdrawn – as indicated in Minister Azhar’s budget declaration.
Furthermore, this development means that it has now become all the more critical for property owners to avail the current government’s amnesty scheme asset declaration cover before its June 30 deadline sets in – otherwise they may stand to face inquiries regarding their sources of real estate financing.