FBR okays hiking valuation rates of properties by up to 75pc in 56 cities

ISLAMABAD: In a bid to enhance revenue collection and curb undervaluation, the Federal Board of Revenue (FBR) has approved a significant increase in valuation rates of immovable properties across 56 cities. The increase is aligned with market realities, raising them to 75pc of the existing market rates, effective November 1, 2024.

The FBR is increasing its footprint by bringing valuation tables of immovable properties close to the existing market values. The notified FBR valuation tables will help the tax machinery fetch more revenue from the properties. The number of cities for increasing the valuation table has also been increased from 42 to 56 under the World Bank condition. The government wants to discourage real estate through selling of plots but the government is also working on plans to encourage construction. Under the IMF programme, the government cannot introduce any tax amnesty but deliberations are underway to reduce the tax burden for the construction sector. However, it remains to be seen how the government is going to implement its wishes. The real estate will consider revision into valuation tables for immovable properties as a step towards further discouraging transactions in the property sector.

The notification of the revised valuation rates will be uploaded by the FBR anytime. The chairman of FBR has granted his assent for jacking up valuation rates after a series of meetings with the developers and builders at the FBR headquarters. The FBR had previously adjusted property valuations in 2018, 2019, 2021 and 2022. After a gap of over two years, the FBR is now going to issue fresh values of immovable properties. The FBR approved the enhanced values after vetting by the Law and Justice Division. The Federal Tax Ombudsman had given the October 11 deadline for the completion of the task but it took more time to get vetting from the Law Division.

There are cases where the values were raised up to 75 percent. The values of commercial, industrial and residential properties have been separated under the new notification. The valuation rates of properties in 56 cities have been revised upward, including Abbottabad, Attock, Bahawalpur, Chakwal, Dera Ismail Khan, Dera Ghazi Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafiz Abad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.