ISLAMABAD: The business community has firmly rejected the Federal Board of Revenue’s (FBR) decision to sharply increase property valuation rates in Islamabad and has announced a protest demonstration and sit-in outside the FBR House on December 22 if the notification is not withdrawn.
The unanimous decision was announced by Islamabad Chamber of Commerce and Industry (ICCI) President Sardar Tahir Mahmood during a heavily attended press conference at the Chamber House on Monday evening.
According to the controversial FBR notification, official residential and commercial property valuations in the federal capital have reportedly been raised by up to 1,700 percent.
Addressing the media, Sardar Tahir Mahmood said property values had been increased by 200 percent to as much as 1,700 percent without any realistic assessment. He noted that while DC rates are normally revised periodically by a reasonable margin, years of inaction followed by sudden, excessive increases had resulted in unjustified and irrational valuations. He added that the business community strongly opposed the move, as the increases were imposed without stakeholder consultation.
Warning of strong resistance, the ICCI president said traders would stage a sit-in in front of the FBR on December 22 if the notification was not immediately withdrawn. He remarked that doing business in Pakistan had effectively been criminalised, as property valuations in Islamabad were increased overnight by up to 1,700 percent, pushing property transfer fees from around Rs. 4 million to as high as Rs. 10 million.
Mahmood further said that despite extremely challenging economic conditions, the business community was struggling to keep enterprises afloat. He pointed out that an SRO related to property valuation tax was issued in November 2025, after which transfer fees surged dramatically.
Terming the hike irrational, he said the business community was even willing to hand over properties to the FBR at prices lower than the revised valuations. He claimed that due to poor planning and flawed decision-making, property transfers had come to a standstill, resulting in zero tax collection for the national exchequer over the past four days.
Highlighting the country’s shortage of nearly 20 million housing units, Mahmood challenged FBR officials, stating that traders were ready to sell properties at half the revised valuation rates. He said the new rates were around 50 percent higher than prevailing market prices and completely unacceptable.
He warned that such coercive measures would strangle trade and industry, leading to business closures, rising unemployment, economic instability, and the relocation of industries to other regions and countries. He added that the sudden and unilateral increase in property valuations had severely dented investor confidence and undermined the ease of doing business.
Calling for immediate intervention, Sardar Tahir Mahmood appealed to Prime Minister Shehbaz Sharif and Chief of Defence Forces Field Marshal Asim Munir to take notice of the situation and protect the country’s broader economic interests. He described the FBR’s move as detrimental to the Prime Minister’s efforts to revive industry and foster a business-friendly environment.
Chairman ICCI Founder Group Sheikh Tariq Sadiq fully endorsed the decision to hold protests and a sit-in. President of the All Pakistan Anjuman-e-Tajiran, Ajmal Baloch, announced that traders across the city would participate in the December 22 protest. He also demanded an end to corruption under the Point of Sale system imposed on small shopkeepers and called for strict action against those responsible. Additionally, he demanded the immediate removal of Federal Finance Minister Muhammad Aurangzeb.
Business leader Ahsan Malik also addressed the press conference, expressing serious concern over the negative impact of the revised valuations on economic activity and questioning why property valuation revisions in Islamabad had remained pending for the past one and a half years.
Earlier, a consultative meeting was held at the ICCI with participation from representatives of trade, industry, real estate, construction sectors, and residents of the federal capital. Speakers, including Sardar Tahir Mahmood, Sheikh Tariq Sadiq, Chaudhry Abdul Rauf, Kashif Chaudhry, Ajmal Baloch, Israr Mishwani, and others, unanimously termed the notification unilateral, irrational, and anti-business, demanding its immediate withdrawal.
They warned that abrupt measures taken without meaningful consultation would harm investment, disrupt real estate activity, and erode economic confidence at a critical time. Senior Vice President Tahir Ayub, Vice President Irfan Chaudhry, former ICCI presidents, executive committee members, and a large number of trader leaders were also present.
Ajmal Baloch reiterated that if the valuation table was not withdrawn by December 22, traders would stage a protest outside the Chairman FBR’s office. He said that while the Prime Minister was seeking foreign investment, such policies were discouraging investors. Alleging widespread corruption within the FBR, he called for the abolition of the Point of Sale system and strict punishment for corrupt practices, concluding that the entire business community was united and prepared to record a strong protest if its demands were not met.
