KARACHI, Feb 1: For the next three months, effective from Feb 1, all those holding properties on the strength of power of attorneys have been allowed to get these registered in their names on 20 per cent less than the rate in the property valuation tables.
Under this relief, given by Sindh Governor Mohammedmian Soomro on a proposal of the Board of Revenue, all those holding properties on the strength of power of attorneys now have the opportunity to get their Conveyance Deeds executed on the reduced rates of valuation tables on payment of five per cent stamp duty and 1.5 per cent registration of the documents.
From May next, the government has declared that this relief will be withdrawn and those who want the registration of property in their names will have to do so on payment of five per cent stamp duty on 100 per cent rate of the property valuation tables.
Property transactions in Sindh and for that matter in all parts of Pakistan as a general practice is done on power of attorneys. It has led to litigation in a large number of cases and deprived the exchequer of the revenue generated from transfer and registration in specific names.
Last year, just before the budget presentation, the Sindh government offered a major concession by bringing down the stamp duty rate from nine per cent to five per cent. It also offered a 10 per reduction in the rate of property valuation tables.
The government has offered a further concession of 10 per cent reduction on rates of the valuation of the rates on property valuation tables. The total concession now available is of 20 per cent of the rate of valuation tables.
With this concession, the government has urged the public to avail of it in the next three months as from May not only the rates in the valuation tables will rise again by 20 per cent but the Board of Revenue is also giving a “serious and hard” look on the power of attorneys.
Property tables in all the districts of the province are drawn up on the basis of an exhaustive survey. This survey determines the valuation of residential and commercial properties, open plots and constructed houses. Categorization of urban properties is done on the basis of areas where these are located.
In an earlier relief for payment of stamp duty on the power of attorney obtained for consideration, the time limit for end-January last had been prescribed for voluntary production and a nominal penalty of Rs10 was levied. Now this period is being extended up to Feb 28 allowing people to get their power of attorney obtained for consideration. After Feb 28, the collector will decide penalty on a case-to-case basis.
Power of attorney has become a ticklish issue with the Sindh government. Power of attorney becomes a necessity in most of the financial transactions and property dealings. But it has its own problems.
Under land reforms, the landlords had given away their extra land but reclaimed it back from their Haris on the strength of the power of attorneys. A big fire in Nawabshah office of the Board of Revenue in 1998 where all documents mainly records of power of attorney pertaining to land coming under the Left Bank Outfall Drainage were burnt down is mentioned as one of the cases where big landlords use this power for their own interests.