A delegation of realtors, builders and developers led by Muhammad Shakeel Munir, President, Islamabad Chamber of Commerce & Industry (ICCI) met with Senate Standing Committee on Finance, Revenue and Economic Affairs and briefed them about the problems being faced by the business community due to the increase in the market value of immovable properties by FBR from 1st December 2021.
Sardar Tahir Mehmood President Realtors Federation of Pakistan, Arif Jeeva Vice President FPCCI & former Chairman ABAD Ch. Muhammad Masud Convener ICCI Real Estate & Developers Committee, Muhammad Ejaz Abbasi former President ICCI, Farrukh Riaz President & Maj Nadeem Qasim Vice President of Real Estate Consultants Association DHA Islamabad, Maj. Rafiq Hasrat, former President Realtors Federation of Pakistan, Yasin Anjum, Malik Ahsan, Rana Qaiser Shehzad, Saad Khan, Syed Imran Bukhari and others were in the delegation.
The FBR officials also briefed the Committee on the revised valuation of immovable properties. Senator Kamil Ali Agha expressed his serious reservations regarding the mechanism followed by FBR recently for the valuation of properties. He asserted that FBR has increased the value of properties from 100 to 700% without any logical justification and rationale.
The Chairperson Committee directed the FBR officials to revoke the recent SRO issued in this regard and urged the FBR officials to determine the value of immovable properties in consultation with relevant stakeholders in next 15 days. During the on-going consultation process for a new mechanism, previous regulation and arrangements should be put in place so that businesses can run as usual. For all the future regulations, FBR should provide ample time to the stakeholders to comply and adjust their businesses accordingly. Chairman Committee further directed the officials to do thorough due deliberation by taking on board all the relevant stake holders.
Meeting was attended by Senators, Syed Shibli Faraz, Saleem Mandviwala, Sherry Rehman, Kamil Ali Agha, Saadia Abbasi, Syed Faisal Ali Subzwari, Anwar ul Haq Kakar, Leader of the House, Dr. Shahzad Waseem, Senior officials from FBR and representatives of real estate organizations.
Speaking at the occasion, Muhammad Shakeel Munir, President ICCI and other members of delegation said that FBR has made unprecedented hike in property valuation without consultation with stakeholders due to which sale/purchase of property business have stopped and deals were cancelling as it was not possible to pay very high taxes on new valuation. Due to this situation, FBR would also lose tax revenue on property business. They said that the new rates would badly affect the business of all constructed related industries and negate the benefits of PM’s construction package. They demanded that FBR should immediately withdraw new rates of properties and engage all stakeholders in consultation to determine the new property valuation with consensus.