Lahore - The Punjab Industrial Estates Development and Management Company (PIEDMC) conveyed to the Federal Board of Revenue (FBR) that the rates determined by the Board on sale deeds in Sundar Industrial Estate are not applicable.
The FBR on the other hand determines rates at the industrial estates so far to which the PIEDMC has challenged to the extent of the Sundar Industrial Estate Lahore. The PIEDMC CEO in a letter to the FBR has pleaded to withdraw its notification dated August 2, 2016 on the tax collection issue. The company CEO Iftikhar Hussain further wrote to the FBR chairman on January 19, 2017 on the issue of withdrawal or amendment in the notification dated August 2, 2016.
It is to be noted that the FBR in its letter has stated that “the concept of fair market value under section 68 of the Income Tax Ordinance 2001 is the price, determined by the FBR that an immovable property would ordinary fetch on sale in the open market”.
The PIEDMC further wrote that the FBR has categorised Sundar Industrial Estate as a commercial area which is totally incorrect as the industrial estates, corridors and zones do not fall under the residential or commercial area domain. In the Sundar Estate, plots are allotted on subsidised rates decided by the board of directors of the PIEDMC. The BoD includes Secretaries to Industries, Finance, Labour, TEVTA chairman and two members of the provincial Assembly. The purpose of this subsidy is to achieve the goal of rapid industrialisation and colonisation in the provinces as per the vision of the Punjab Chief Minister Shehbaz Sharif.
As per documents, the District Collector on November 30, 2016 has already withdrawn its rates. “The allottees or transferees in the Sundar Industrial Estate are allowed to pay stamp duty on transfer of industrial plots on actual sale price.” An officer of the PIEDMC said that the FBR has not yet amended or withdrawn its notification.
