KARACHI: Federal Board of Revenue (FBR) has decided to take help from various sources for determination of immovable property valuation in order to check black money and tax evasion.
The real estate business in Pakistan is reportedly parking lot for black money. The valuations declared in transactions are much lower than the agreed values between buyers and sellers.
The declaration of lower values caused immense loss to national exchequer in terms of taxes. Besides, the undeclared money also finds easy way.
The FBR recently established directorate general of immovable properties for the purpose.
The FBR said that the valuation of immovable properties would be determined through roping in private valuers, periodic indexing of valuation, updation based on market survey.
Further, the tax offices will also track online marketing of immovable properties. The FBR sources said that various online property websites are quoting the prices of different areas in the country. However, the declared values of those areas are much lower than the quoted prices.
The tax offices will also take help from the prices quoted by real estate builders, marketing entities, brokers, architects, consultants, interior designers and all other related services providers.
Further, the FBR will also take help from geo mapping of immovable properties, which will include: digitized property mapping and geo – referencing based on digitized survey; and photogramatic, a method of mapping based on aerial information.
The FBR will also initiate mapping of rented properties (all kinds) at major urban centers, industrial estates, zones and areas.
It will track operations of foreign real estate concerns in Pakistan and take help from real estate metrics to gauge the health of the real estate sector.
The major source for determination of fair value the FBR will take help the prices quoted on the stock exchange through Real Estate Investment Trust. In this regard it will take help from portfolios of properties whose stock prices investors frequently use to determine and analyze industry trends.
It will conduct survey and market analysis of real estate Market Segments i.e.Geography, PropertyType, OwnershipType and Occupier/ Tenant Type.
The determination of fair market value will be taken into consideration through real estate financing and insurance: tools and documentation with special reference to taxation regime.