KARACHI – Karachi Chamber of Commerce and Industry (KCCI) President Younus Muhammad Bashir has requested Finance Minister Ishaq Dar to immediately withdraw Property Valuation Tables and to go ahead with the old system of collector’s value.
“The provincial and federal governments, along with all stakeholders, must jointly decide the increase in collector’s value which can be raised up to 3 to 5 times according to the location of the property,” he said in a communiqué issued to Dar.
“These rates should be acceptable by both the federal and provincial governments for registration, provincial taxes and Capital Gain Tax etc,” he added.
Seeking finance minister’s attention towards the recent slump being suffered by the real estate and construction sectors due to implementation of unrealistic Property Valuation Tables, issued by the Federal Board of Revenue (FBR), Bashir pointed out that these tables had been finalised without taking inputs from all the stakeholders.
“The situation has resulted in an extremely disturbing situation, which is likely to have a deep impact on some of the key economic indicators,” he opined.
The KCCI president was of the opinion that it was totally unworkable to have two rates of the same property for provincial and federal taxation purposes. “This will create hurdles in accounting procedures, besides paving the way for corrupt elements to benefit from the situation,” he apprehended.
He said that uncertainty prevailed in the entire real estate & construction sectors, which had terribly affected the performance of this particular sector during the last couple of months. “It has been observed that transactions have hardly taken place during this period and the real estate & construction sectors have come under tremendous pressure,” he added.
Bashir feared that if the situation went on like this, the consequences would soon appear in key economic indicators as dozens of allied industries across Pakistan were likely to suffer.
He further noted that the decisions on these tables had been implemented after consultation with some real estate agents and a committee of FPCCI only, whereas many genuine representatives, including industrial estates and major chambers of the country, were not taken on board. “Consequently, after consultations with KCCI, even FPCCI has now rejected FBR’s tables saying these are not workable,” he added.
KCCI president said that there was absolutely no solution to the situation emerging after the issuance of Property Valuation Tables, except withdrawal of the same.
He hoped that finance minister would issue prompt directives as per the aspirations of the business and industrial community, which would help restore the confidence of local and foreign investors of real estate sector, which was performing exceptionally well and had also attracted a sizeable amount of foreign investment prior to implementation of the tables.