FBR Set to Release New Property Rates Nationwide
The Federal Board of Revenue (FBR) is preparing to release updated property valuation rates across 54 cities in Pakistan, an expansion from the previous 42 cities. Sources indicate that the updated property rates, likely to be introduced within the coming days, will more closely reflect current market values. This measure is part of the FBR’s initiative to enhance tax collection in the real estate sector.
Key Details of the Updated Property Rates
- Expanded City Coverage: Major urban centers such as Karachi, Lahore, Islamabad, and Peshawar are included, as well as new additions like Bhakkar, Charsadda, Chiniot, Khanewal, Khushab, Mianwali, Sabi, and Swabi.
- Regional Adjustments: Rates in Balochistan are expected to be adjusted downward, aiming to better align with the local market dynamics.
- Increase in Tax on Property Transactions: In a bid to boost revenue, there is a proposal to increase taxes on both sellers and buyers of property files.
Consultation with Stakeholders
The FBR worked in consultation with real estate associations, builders, and developers to ensure a balanced approach to the new property valuations. The initiative is designed to avoid discouraging growth in the real estate and construction sectors.
The Law Ministry is currently reviewing the new valuation tables, with a possible release scheduled for this week.