Stakeholders discorded on property fair price of 3 big cities

According to sources, government and realtors negotiated on the property tax matters on Thursday, but unfortunately no result currently have been drawn out of this negotiation. “Vice chairman Association of builders and developers Mr. Arif Jewa” told media that Thursday was the day when these matters were going to be decided however still there is no progress. Karachi, Lahore and Islamabad’s property fair price proposed by Government had big differences, on the other hand government has also demanded an increased rate of land in some cities.

FPCCI and real estate committee’s Chairman Abdur Rauf said that there was no discussion on amnesty and we didn’t demand any amnesty from government either, but tax shouldn’t be imposed on the property deals settled before 30 June 2016. Negotiation process reached an advanced step peacefully however team of 13 realtors seemed reluctant to accept the government proposed rate. Heavy differences still persistent on fair market price value determination of 21 big cities.

Chairman FBR Mr. Nisar Muahmmad Khan told media that there is no point of difference between FBR and realtors expect those 18 cities where 35% range is applied. Now FBR wants an agreement with realtors other than DC rate. Tax stamp is added on the basis of duty imposed whereas withholding tax and gain tax for filers and no filers is levied on different ratios. FBR is in a view that they can add 26-30 billion in the economic cycle of this fiscal year. Referring to a survey done by FBR, buying and selling of property yields 6-7 trillion every year and only stamp duty collections clearly show that property dealing is not halted. Property buying and selling is increased upon first 28 days of July, whereas it was likely to decrease under opinion of some. Moreover, on Finance Minister Ishaq Dar’s direction, FBR hired a third party valuators to counter check the findings and they validated 80% work of FBR. Remaining 20% consists 3 cities where market rate of 15% area was estimated low and 5% was overvalued. Keep visiting sbx.com.pk for more updates and news.

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