FBR Increases Property Valuation Rates in 56 Pakistani Cities

FBR Increases Property Valuation Rates in 56 Pakistani Cities to Align with Market Values

The Federal Board of Revenue (FBR) recently implemented a significant upward revision in property valuation rates across Pakistan, affecting 56 cities. The new values will take effect from November 1, 2024, reflecting the FBR’s effort to bridge the gap between declared and market property values.

Key Highlights:

• Increase Up to 75%: Property values in certain locations have been raised to approximately 75% of the current market rates.
• Collaborative Process: These revised valuations come after comprehensive discussions with developers and builders at the FBR headquarters, considering the industry’s feedback.
• Revised Categories: The new values differentiate between residential, commercial, and industrial properties to create a more accurate reflection of each sector’s market conditions.
• Previous Adjustments: This is the fifth valuation adjustment since 2018, with earlier adjustments made in 2018, 2019, 2021, and 2022.
• Wide Geographic Scope: The revision impacts major cities, including Islamabad, Karachi, Lahore, Peshawar, Quetta, and Sialkot, as well as areas like Abbottabad, Faisalabad, and Bahawalpur, among others.

Objective of the Increase

The FBR’s objective behind this upward revision is to establish greater transparency and accuracy in property valuation. By aligning closer to market values, this measure aims to curb under-declaration, ensuring that property tax calculations are fair and reflective of the actual market landscape.

Why It Matters

For property buyers, sellers, and investors, this adjustment could mean a shift in transaction dynamics, potentially impacting investment decisions and tax liabilities. Developers and real estate professionals have also expressed concerns, which were factored into the FBR’s final notification.

These newly adjusted values underscore the government’s ongoing efforts to streamline property taxation and make property dealings more transparent.

Cities Impacted by the Revision Some of the notable cities affected by the new valuation rates include Abbottabad, Gujranwala, Lahore, Karachi, Faisalabad, Rawalpindi, and Peshawar. The Federal Tax Ombudsman has directed the FBR to implement these valuations promptly to meet the November 1 deadline.

Final Thoughts

This significant update by the FBR to revise property values closer to market rates reflects an ongoing transformation in Pakistan’s real estate sector. Property buyers, sellers, and investors should stay informed on the latest valuation changes and consult with real estate professionals to understand how these revisions may impact future transactions.

Ref: brecorder