Islamabad: The Federal Tax Ombudsman (FTO) has imposed an October 11, 2024 deadline on the Federal Board of Revenue (FBR) to update the valuation of immovable properties throughout Pakistan, addressing a delay that has extended over a year. This directive aims to expedite the long-overdue process and ensure compliance with existing tax regulations.

According to Zameen.Com, the FTO issued a formal notice to the Chairman of the FBR on October 6, 2024, demanding an explanation for the prolonged delay in revising these property valuations. The notice stressed the importance of meeting the newly set deadline and cautioned that failure to submit a final compliance report by this date would initiate proceedings for “Defiance of Recommendations” under Section 12(2) of the FTO Ordinance, 2000, targeting the responsible FBR officials.

In response to the FTO’s demands, the FBR has indicated that new Statutory Regulatory Orders (SROs) detailing the revised property values in major cities are nearing completion. This development follows an investigation into the delays, which culminated in findings and recommendations issued on September 6, 2023. These findings instructed the FBR to adhere to the recommendations made by the Chief Commissioner of Inland Revenue (IR), Regional Tax Office (RTO), Hyderabad.

Moreover, on September 31, 2023, the Secretary for Court Matters at the FBR assured that the Inland Revenue Wing is actively working on revising the property valuations nationwide. Draft SROs for several cities, including Mirpurkhas, are expected to be finalized soon, aligned with the guidance from the Chief Commissioner IR, RTO, Hyderabad.

The timely revision of these property valuations is crucial for ensuring that property taxes are aligned with current market values, thereby supporting equitable tax collection and compliance across the country.