The Federal Tax Ombudsman (FTO) has intervened to address significant issues in Pakistan’s property valuation system. An investigation was initiated due to discrepancies in the valuation of immovable properties. The FTO’s research wing found various anomalies and inconsistencies in the valuation tables issued by the Federal Board of Revenue (FBR).
To rectify these problems, the FTO directed the FBR to activate the ‘Directorate General of Immovable Property,’ established by the Finance Act of 2018. This directorate was meant to create a comprehensive framework for property valuation, appointment of valuers, and procedures related to property taxation, but it remained non-functional.
The FTO recommended the development of Standard Operating Procedures (SOPs) for property valuation and the constitution of an anomaly committee to address stakeholder grievances. Additionally, the FTO suggested hiring competent valuers for transparency and accuracy in the valuation process and regular revision of valuation tables.
Furthermore, the FBR’s in-house valuation regime has replaced district authorities’ valuations in large cities due to discrepancies. Still, these new valuations have faced criticism for their inconsistencies and loopholes, hindering transparency in the real estate sector.
In summary, the FTO has exposed flaws in Pakistan’s property valuation system and called for comprehensive reforms to ensure fairness, accuracy, and transparency in taxation.