Daily Times

ISLAMABAD: The government has apparently conceded before the real estate agents, as it is no longer demanding evaluation of lands’ market price in 21 cities by the State Bank of Pakistan or any third party; rather it has asked a 17-member committee of real estate agents and other stakeholders to evaluate the fair market price within five days.

The FBR and real estate agents met for the third time this week in Islamabad on Thursday to sort out the matter of land prices mechanism and the issue of taxing gains from property investment.

After the meeting, Finance Minister Ishaq Dar told the media that the 17-member committee would evaluate the fair market price within the stipulated time and submit a report to the FBR.

In the meantime, an FBR team will also collect information regarding the fair market price, while both sides will meet next Wednesday to solve this matter. “The government is always ready to solve the genuine problems of every sector,” Dar said.

On this occasion, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Abdul Rauf Alam said, “We were very optimistic with the presence of the finance minister. The government has now sought fair market price in five days, after which the matter will be resolved.”

He further said that every Pakistani had been affected by this amendment, and now all confusions were being cleared.

Sources told this scribe that the government withdrew its demand to get the market price evaluated by the State Bank of Pakistan or any third party. Sources further said that Ishaq Dar told FBR officials not to harass builders and real estate association members, as this sector is contributing a lot to the national exchequer.

Furthermore, the government has also made a commitment to the association that their transaction time would be increased to five year. Before this, they have to pay capital gain and advance tax instantly.

It may be mentioned here that the government made amendment to the Income Tax Ordinance, 2001, to eradicate the earning of black money from the real estate sector, and to evaluate the property at market price that has been announced in Budget 2016-17. According to the new law, the FBR can refer a case to the third party to determine the property at market price; it cannot evaluate the mater itself.