ISLAMABAD: The Federal Board of Revenue (FBR) updated the valuation rates for immovable properties in 56 cities, setting them at 75% of the actual market rates starting November 1, 2024.
This decision aims to enhance revenue collection and reduce the undervaluation of properties.
The updated rates reflect the FBR’s commitment to align the property values with their real market worth, expanding the number of cities affected from 42 to 56, in line with World Bank stipulations.
The new valuation rates, which include separate categories for commercial, industrial, and residential properties, affect cities such as Abbottabad, Islamabad, Karachi, Lahore, and many others.
The detailed notification of these revised rates is expected to be made public soon, following the approval from the FBR chairman. The changes will potentially raise property values by up to 75% in some cases, as part of a broader effort to realign with current market conditions and boost fiscal revenues.
This initiative is part of broader government efforts to shift focus from real estate speculation towards encouraging construction activities. Although the IMF program currently prevents the introduction of any new tax amnesties, the government is exploring ways to lessen the tax impact on the construction industry.
Despite these intentions, the implementation details remain unclear, and the property sector might view these revised valuation rates as a deterrent to property transactions.
The FBR’s move comes after extensive consultations with developers and builders and follows previous adjustments made in 2018, 2019, 2021, and 2022. This latest update, vetted by the Law and Justice Division, comes after a hiatus of over two years.
