KCCI irked by property valuation amendment

Says SBP lacks expertise in the field, wants amendment revoked.

KARACHI: Referring to an amendment made to Section 68 of the Income Tax Ordinance 2001 through the Finance Act 2016, Karachi Chamber of Commerce and Industry (KCCI) President Younus Muhammad Bashir stated that the particular amendment must be immediately revoked as it will open more avenues for corruption.

“The amendment would increase corruption,” Bashir said in a statement issued on Friday.

He said that the previous system for property valuation through a pre-defined category-wise table must continue but this property valuation table needs to be revised more frequently and more categories must also be added to the table.

He urged the government to take a decision at the earliest in this regard because this amendment, which has come into force from July 1, 2016, would cause immense problems for buyers and sellers of immovable properties.

He said it was a matter of concern that under the amendment, a new mechanism would be introduced which would bind the investors to get their properties evaluated through valuers of State Bank of Pakistan (SBP) and refer it to the FBR Inland Revenue Department.

This is not a sensible move as SBP lacks expertise in this particular field, he opined, adding that it will trigger unprecedented corruption even in SBP, which is considered the least corrupt public institution.

Published in The Express Tribune, July 2^nd, 2016.

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