| Islamabad: The Federal Board of Revenue (FBR) has announced an increase in property valuation rates by up to 80% across 56 cities, effective November 1. The news was reported by a source on October 30.
Read: FBR’s new POS scheme: Cash rewards for fake receipt reports, fines for retailers
As per detail, the latest revision includes 12 new cities, such as Bannu, Chiniot, Kotli Sattian, and Ghora Gali, expanding the coverage beyond the previously included 44 cities. FBR Chairman Rashid Mahmood Langrial stated that the valuation rates have been “moderately revised upward,” with changes based on property type, location, and other relevant factors.
This is not the first time the FBR has adjusted property valuations; similar revisions took place in 2018, 2019, 2021, and 2022. The updated valuation tables were published on the FBR’s website late Tuesday, with tables for approximately two dozen cities available at the time of reporting.
Read: Tax filings double for 2024, with PKR123 bn collected by FBR
The revised valuations will determine federal taxes, including capital gains tax (CGT) and withholding tax. Unlike many countries where taxes are calculated based on transaction values, property transactions in Pakistan often declare a collector value significantly lower than the actual price.
Under Sections 236C, 236K, and 7E of the Income Tax Ordinance, the FBR collects withholding taxes, along with a 5% federal excise duty imposed on property transactions in the latest budget. In the previous fiscal year, the FBR collected nearly Rs150 billion in advance income tax under these sections, while figures for revenue collected through Section 7E and other measures remain pending.
Since 2016, the FBR has been working to establish fair market property prices in major urban centers. In provinces, valuation tables are typically issued by district collectors under Section 27-A of the Stamp Act of 1899. |
|
