Islamabad: The Sub-Committee of the Standing committee on Finance, Revenue and Privatisation sought recommendations from the property dealers of Karachi and Faisalabad to determine new rates.
The body met under Abdul Manan on Monday at Parliament House in which the FBR valuation table on property tax was discussed.
Property dealers from Karachi and Faisalabad informed the committee that property business was affected due to the valuation rates.
The difference on market and FBR rates is double in Karachi SITE area, Chinese companies are interested to buy land in Karachi Port Qasim but due to high taxes, they are not buying the land, additionally the transaction has been struck down in Defence Housing Authority (DHA).
Inland Revenue Member Rehmat Wazir said that the valuation rate is just 30 percent of market rate however, market rate is far more than the FBR rate.
The government will increase the tax rate with the passage of time, he added.
Committee member Mustafa Mehmood said that immense black money is being invested in real estate and if the money is not landed in this sector then FBR did not apply the valuation rates.
He added that he does not have any objection if property dealers or people registered their property on market rates.
Manan said the FBR has accumulated much tax on transaction during the financial year as compared to first six months of previous year adding that people were getting registries.
Mehmood said the property prices have been increased unnaturally in the country but there was no increase in rent.
Makhdoom added that dwellers of Model Town and housing schemes would not be able to buy property with white money.