The DC Value of Properties Shouldn’t Be Less than 85% of FBR Valuation
According to the latest news, Pakistan and the World Bank revised the period and DLI (Disbursement Linked Indicators) for a $400 million loan for Pakistan to Raises Revenue (PRR) for improving the tax-to-GDP ratio from 8.5% to 8.8% and all provinces adapting to digital data sharing.
As per the conditions of the World Bank’s Loan, FBR is obligated to sign and agree to a Memorandum of Understanding (MoU) to automate the data sharing of all four provinces. This will create a single taxpayer database. Furthermore, the conditions of the World Bank clearly state that an Independent Verification Agent (IVA) will verify the functionality and working of the automated database in FBR and all four provinces.
In addition to this, FBR has agreed to implement the revised property valuation table in four provinces under the WB’s project named Pakistan Raises Revenue. Furthermore, FBR has also agreed to WB’s condition, under which the DC rates of the property in four provinces would be at least 85% of the rate determined by FBR. Furthermore, the Federal Board of Revenue has plans to implement the new property valuation values in the next fiscal year i.e. from July 1, 2024.
According to resources, FBR has also signed with the provinces to implement a digital, systematic, and regular General Sales Tax (GST). It will ensure a smooth and accurate sharing of data and also reliability.
In the past, the government of Pakistan requested the World Bank to extend the Pakistan Raises Revenue project deadline by one year, the total value of this loan program is $400 million. FBR presented the revisions to the current project development objective including creating a time frame for completion of the IPF Program, revision of the selected PDO indicators, Adjusting the DLIs and IRIs, and modifying the select DLIs and verification changes.
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