The Federal Board of Revenue (FBR) has decided to temporarily suspend the property valuation table after strong concerns raised by the real estate sector and public circles.
According to the FBR, after the implementation of the recent valuation table, the tax levied on property transactions had become much higher than the actual market prices, to which buyers, traders and investors raised objections.
Officials say that on the instructions of the Prime Minister, a detailed review of these objections was conducted, after which it was decided that the old valuation table will be suspended until the revised SRO is issued.
According to real estate experts, the purchase and sale of property was slowing down significantly due to high valuations. They say that if taxes are brought closer to market rates, not only will transactions increase but government revenue may also improve.