Islamabad: According to news released on October 25, the Federal Tax Ombudsman (FTO) has called for improvements after exposing systemic weaknesses in the Federal Board of Revenue’s (FBR) property valuation systems that affect property assessments nationwide.
There has been a request for quick revisions because the FTO’s thorough study revealed abnormalities, contradictions, and irregularities in FBR’s property value tables.
The FTO recently conducted an inquiry that revealed severe problems with the FBR’s property valuation practices nationwide.
Several immovable property valuation tables were examined by the FTO as part of its investigation, which revealed systematic issues that have sparked questions about the impartiality and accuracy of property assessments.
According to the FTO’s findings, large urban centers—where properties worth trillions of rupees are at risk—do not have a uniform system for valuing real estate.
The lack of a trustworthy foundation for valuing immovable properties, especially in metropolitan areas, was a significant problem.
The inquiry also revealed that the Directorate General of Immovable Property (IMP), created by a legislative statute in 2018 to harness the potential of the real estate industry, continued to be non-operational, which added to the inefficiencies in property assessment.
FBR issued and highlighted in the FTO report the existence of anomalies, inconsistencies, infirmities, and contradictions in several Statutory Regulatory Orders (SROs). Transparency and fairness in real estate transactions have been called into question due to these problems, which have resulted in improper valuation, undervaluation, overvaluation, and arbitrary power exercises.
According to the FTO’s suggested rapid changes, the Directorate General of Immovable Property should be activated and develop a uniform system for property development.
Proposals to create permanent anomalous committees and hire certified values have also been suggested to alleviate stakeholder concerns and ensure the accuracy of property valuations. The FTO’s reform proposal aims to address these problems and create a more open and effective property valuation system across the country.