Estate agents, builders and developers to submit revised DC rates for 18 major cities within five days
The government on Thursday agreed to remove the condition of independent valuators appointed by the State Bank of Pakistan for real estate valuation and maintain the deputy collector (DC) rates for tax on immovable property and gave five days’ time to estate agents, builders and developers to submit revised DC rates in 18 major cities of the country.
Talking to media after the parleys, Finance Minister Ishaq Dar, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Abdul Rauf Alam and representatives of the real estate sector said that the issue had been resolved. The DC rates for 18 major cities will be revised in the next five days and then the final formula of collection of tax will be amicably settled.
The real estate sector representatives said that the attitude of Finance Minister Ishaq Dar and Haroon Akhtar Khan was very positive which helped in resolving the issue. They said that they were saved from the blackmailing of the FBR.
An official source said the government agreed to the real estate sector’s concern that bringing in valuators will further complicate the market as they depend on real estate agents to determine the market price. However, he said the FBR plans to make its own valuation to ascertain whether the real estate people had done the correct valuation.
During the meeting, the real estate sector representatives said that valuation for the Haris Steel Mill and NICL land purchase were done by SBP-appointed valuators and both valuations were rejected by the apex court as highly overpriced. They said the new system will only invite more litigation.
The government agreed to their proposal that the DC rates were less than sales deed because provincial governments were lethargic in revising the rates. Their proposal was accepted that instead of reinventing the wheel the present system should be maintained with some improvement.
They even offered to present new set of DC rates which was accepted. They showed a desire to pay the taxes but said they wanted to avoid notices from the FBR. The issue of capital gains tax and bringing the tax liability back to two years from five years will be decided on July 27.
Meanwhile a statement issued by the FBR said Minister for Finance Ishaq Dar on Thursday said that in a bid to resolve the issue of real estate builders and association with the FBR, a 13-member committee was constituted for fair valuation of the immoveable property in 18 major cities of the country.
Addressing media personnel, after conclusion of the third round of talks between the real estate agents and FBR, the minister said that in the next meeting to be held on July 27 (Wednesday), the two parties will reach a consensus as things are heading in a positive direction.
He said the government had been listening to the genuine issues of the business community and this time, too, it would accommodate them.
On the occasion, FPCCI President Abdul Rauf Alam said that the government is responding to their issues positively and it is hoped that in the next meeting “we will reach a consensus”.
He said the government understands the issues of the business community. He said that this issue was not only the issue of the real estate and builders associations, it was also the issue of every businessman in the country.