ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the value of immovable property constructed more than 20 years equal to the value of open plot.
According to property valuation for Karachi issued through SRO 345(I)/2022, the FBR issued a fresh property valuation for the residential and open plots located in various parts of the city.
The property registrar of the provincial government will collect withholding tax on the behalf of the FBR on the basis of property valuation fixed by the federal tax authority.
The FBR allowed reduction in valuation of properties on the basis of age of the built up structure.
It said that the value of residential built up property (including basement and first floor) is allowed to be reduced according to the following criteria:
1. Age of built up structure up to five years: no reduction is allowed in value.
2. Age of built up structure between five to 10 years: five per cent has been allowed as reduction in value.
3. Age of built up structure between 10 to 15 years: 7.5 per cent has been allowed as reduction in value.
4. Age of built up structure between 15 to 20 years: 10 per cent has been allowed as reduction in value.
5. Age of built up structure more than 20 years: the value shall be equal to an open plot.
The FBR further allowed reduction in value of built up properties (flats and apartments) according to following criteria:
1. Age of built up structure up to five years: no reduction will be allowed in value.
2. Age of built up structure between five to 10 years: 10 per cent has been allowed as reduction in value.
3. Age of built up structure between 10 to 20 years: 20 per cent has been allowed as reduction in value.
4. Age of built up structure between 20 to 30 years: 30 per cent has been allowed as reduction in value.
5. Age of built up structure more than 30 years: 50 per cent has been allowed as reduction in value.
The FBR also allowed reduction in value of commercial built up property according to the following criteria:
1. Age of built up structure up to 10 years: no reduction is allowed.
2. Age of built up structure between 10 to 15 years: 5 per cent has been allowed as reduction in value.
3. Age of built up structure between 15 to 20 years: 8 per cent has been allowed as reduction in value.
4. Age of built up structure more than 20 years: 10 per cent has been allowed as reduction in value.
The FBR said that the value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10 per cent.
The value of commercial built up excluding ground floor has been reduced by 25 per cent.
The value of Residential Plots (Defence Housing Authority) of following categories may be decreased by 25 per cent:-
1. Nala facing plot
2. Commercial facing plot
3. School facing, mosque facing plot/Graveyard facing plot.
4. Rear plot (Back Side plot)/Triangle plot
