ISLAMABAD: In a first sign of political weakness, the government has postponed the planned 30% increase in property valuation rates for federal tax collection purposes, which underlines adverse implications of a politically unstable environment.
The average 25% to 30% increase in the property valuation rates for collection of federal taxes under the second phase had to be implemented from July 1, as announced by Finance Minister Ishaq Dar last year. The decision has been deferred until political normalcy returns, said sources in the Federal Board of Revenue (FBR).
Authorities had estimated collecting an additional Rs10 billion due to up to 30% increase in valuation rates during fiscal year 2017-18 that began on July 1. The exchequer will take a hit of about Rs850 million per month due to delay in implementing the decision. The government missed the opportunity when Finance Minister Ishaq Dar decided to postpone the increase in valuation rates from July 1 in order to avoid any backlash from realty investors after the announcement of the budget, said the sources. 
