Slammed: K-P property dealers oppose new valuation rates

PESHAWAR: The provincial government and property dealers have rejected the new land valuation table created by the Federal Board of Revenue (FBR) for the various districts of K-P, including Peshawar. They said the increase in property tax is unjust.

The property valuation table has been notified for Lahore, Multan, Gujranwala, Faisalabad, Sialkot, Islamabad, Karachi, Hyderabad, Sukkur, Sargodha, Mardan, Abbottabad, Peshawar, Quetta and Gwadar.

It is aimed at collecting Capital Gain Tax (CGT) and withholding tax on sale and purchase of the immovable property.

Peshawar has the highest priced land followed by Lahore that stands second on the rating list.

Minister for Finance Muzaffar Said has termed the new valuation rates unfair. In a statement issued to media, he said the valuation rates have been fixed without consulting the provincial government.

“The K-P government will oppose the new valuation rates on every forum,” he said. “The issue has also been discussed with the Sindh and Balochistan governments.”

He added the new rates will have bad impacts over the economy of the province.

The FBR has divided the Peshawar district into two categories – residential and commercial properties with rates ranging from Rs20,000 per marla to Rs1.5 million in the residential sector.

The price of the commercial property ranges from Rs13,000 to Rs4.7 million per marla in various localities of the district.

Properties in Saddar Bazaar, Mall Road, Sunehri Masjid Road, Tipu Sultan Road, Khadim Hussain Road, Arbab Road and Artillery Road has been valued as the most expensive commercial areas with a price over Rs4.7 million per marla.

The most expensive residential areas valued by FBR in Peshawar included Gari Abdul Majid, Tehkal Payan and Tehkal Bala (Jamrud Road) .

While talking to The Express Tribune, president of the K-P Property Dealers Association Mazhar Wakil Durrani said he was present at the meeting where the prices were fixed of the properties and he had no choice but to agree to the rates. He was told that if he does not approve, FBR will increase them by 35%. He said the prices have been increased by 15% against the rates fixed by deputy commissioners.

Published in The Express Tribune, August 6^th, 2016.