FBR to hike property valuation to 90pc in major cities

ISLAMABAD: The FBR on Friday informed the Senate panel that the valuation of properties in major cities would be jacked up from 75 percent to 90 percent of the market rate through the issuance of notification by next month.

The FBR also intends to introduce a simplified scheme for retailers as the Tajir Dost Scheme miserably failed during the voluntary period as only 78 retailers preferred to come for registration.

The Senate Standing Committee on Finance was notified by the nation’s highest tax collection body that a change in taxes is anticipated to take effect in July of this year.

Property value rates would be increased shortly after the 2024–25 budget was approved.

In the current fiscal year, 1.5 million new tax filers were added, according to FBR, as part of the government’s efforts to increase tax revenues. Senator Anusha Rahman, though, voiced concern that the number of tax filers would not rise dramatically in the absence of extreme steps.

The FBR reportedly reported that they had detained 70–80 people after discovering alleged tax evasion totaling Rs 756 billion through fictitious or phony invoices. A significant source of fraudulent invoices, estimated to cost the national treasury between Rs 60 and Rs 70 billion annually, was found to be the steel industry.