![](\"http:\/\/www.zameen.com\/blog\/wp-content\/uploads\/2016\/07\/market-value.jpg\")
<\/p>\n<\/p>\n
Before you assume that this is another blog about how the Finance Bill 2016 has made things difficult for the real estate sector, let me clarify that it is not. In fact, it discusses some of the very useful suggestions given by Naveed Zafar Ashfaq Jaffery & Co, a reputed chartered accountancy firm of Pakistan to the Finance Minister, Mr Ishaq Dar.<\/p>\n
According to a news report published in national dailies today, Dar has shown interest in considering these options with an open mind and heart. We should be able to see the final outcome of these considerations by the end of this month. So that\u2019s one piece of good news for the time being!<\/p>\n
Naveed Zafar Ashfaq Jaffery & Co\u2019s senior partner Ashfaq Tola sent his recommendations to the department regarding amendments made in the Income Tax Ordinance Section 68, according to Express Tribune. In a meeting held with the senior Federal Board of Revenue (FBR) officials yesterday, Dar asked to call the stakeholders in the coming week to find a solution to the existing chaos spurred by the amendments made in the property valuation laws.<\/p>\n
According to the report published in local newspapers today, different options are being considered to assess the real time market value of property in Pakistan. Please bear in mind that, according to FBR, all the amendments made in Section 68 are intended to stop black money from being stowed in the property sector. The news report also reads that despite the immense pressure being exercised by prominent companies from across the country, Dar stands firm on blocking this channel for black money.<\/p>\n
The suggestions considered in this meeting between Dar and FBR officials are discussed below:<\/p>\n
One-time tax amnesty<\/strong><\/p>\n One-time tax amnesty should be introduced to declare the current market value of the property. FBR can the collect 2% or 3% tax on the difference between the old rate quoted per the DC value and the declared current value. The suggestion under consideration also proposes that this 2% or 3% tax should not be paid if the property has been held for over 5 years!<\/p>\n Fixed tax on each transaction<\/strong><\/p>\n The second suggestion given by Mr Tola, and also discussed in the Dar and FBR officials meeting, is to impose a fixed tax of 3% on every transaction of property at hand. Again, this tax would be applicable on the amount of difference between the DC rate and current market value.<\/p>\n Valuation Table revamp at provincial level<\/strong><\/p>\n Tola\u2019s third suggestion is to revamp the values recorded in the valuation table of the collectors of each district at provincial level under Section 27-A of the Stamp Act 1899 and bring it to par with the market value of real estate. Considering the fact that the difference between the DC rate and market value is huge, the values may be increased in a period of 2 to 3 years.<\/p>\n To me, these suggestions sound quite reasonable; what\u2019s your take on it? Let me know in the comments.<\/p>\n","protected":false},"excerpt":{"rendered":" Before you assume that this is another blog about how the Finance Bill 2016 has made things difficult for the real estate sector, let me clarify that it is not. In fact, it discusses some of the very useful suggestions given by Naveed Zafar Ashfaq Jaffery & Co, a reputed chartered accountancy firm of Pakistan to the Finance Minister, Mr Ishaq Dar. According to a news report published in national dailies today, Dar has shown interest in considering these options with an open mind and heart. We should be able to see the final outcome of these considerations by the end of this month. So that\u2019s one piece of good news for the time being! Naveed Zafar Ashfaq Jaffery & Co\u2019s senior partner Ashfaq Tola sent his recommendations to the department regarding amendments made in the Income Tax Ordinance Section 68, according to Express Tribune. In a meeting held with the senior Federal Board of Revenue (FBR) officials yesterday, Dar asked to call the stakeholders in the coming week to find a solution to the existing chaos spurred by the amendments made in the property valuation laws. According to the report published in local newspapers today, different options are being…<\/p>\n","protected":false},"author":18,"featured_media":21815,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[3287,3288,3286],"persona":[],"class_list":{"0":"post-21814","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"tag-fbr-on-property-market-value-assessment","8":"tag-latest-update-on-property-taxes","9":"tag-update-on-property-valuation"},"acf":[],"yoast_head":"\n