| Karachi: The Federal Board of Revenue (FBR) has issued revised property valuation guidelines for Karachi, introducing age-based reductions in the assessed value of residential and commercial properties across the city. The news has been sourced from a February 12 article.
Read: FBR’s property buying ban for non-filers put on hold
According to the new notification, which amends the original valuation rules issued on October 29, 2024, aims to standardise property assessments while accounting for depreciation over time. The revised guidelines introduce a tiered reduction system for residential properties based on age.
For homes aged between 5 to 10 years, the value of the constructed portion will now be assessed at 5% less than the original valuation. Properties aged 10 to 15 years will see a 7.5% reduction, while those between 15 to 20 years old will be valued 10% lower.
The adjustments are even more pronounced for residential flats. Flats aged 5 to 10 years will experience a 10% reduction in value, while those between 10 to 15 years will see a 20% decrease. For older flats, the reductions are steeper: flats aged 20 to 30 years will be valued 30% lower, and those older than 30 years will see a significant 50% reduction in their assessed value.
The FBR’s revised notification also addresses commercial properties, introducing age-based reductions to reflect depreciation. Commercial properties aged 10 to 15 years will now be valued 5% lower than their original assessment. For properties aged 15 to 25 years, the reduction increases to 8%, while those older than 25 years will see a 10% decrease in value.
However, an exception has been made for commercial properties located in Karachi’s Defence area, where values will increase by 15% as per the FBR’s updated guidelines. This adjustment reflects the area’s premium status and higher market demand.
Read: FBR urged to set up fully functional tax office in Gwadar
The FBR’s move to revise property valuations is aimed at creating a more equitable and realistic assessment framework that accounts for the natural depreciation of structures over time. By introducing age-based reductions, the authority seeks to align property values more closely with market realities, ensuring fairer taxation and valuation practices. |
|
