Islamabad: The Federal Board of Revenue (FBR) is preparing to enact a substantial increase in property valuation rates, with adjustments ranging from 20% to 100% across 42 key urban centres in Pakistan. This significant overhaul is part of the New FBR property valuation policy considering current market conditions and bolster revenue from real estate transactions.
Sources indicate that the FBR has finalized the updated valuation tables, which are now awaiting formal approval from the Ministry of Law. Pending clearance, the new rates are anticipated to be implemented within the month. This update will mark the first major revision to property valuation rates since September 2022.
The new rates will affect properties in major cities including Abbottabad, Karachi, Lahore, Islamabad, and Quetta, among others. The specific increase for each city will be based on the prevailing fair market value, reflecting local market trends.
In conjunction with the rate hikes, the FBR is also set to expand its property valuation framework to include an additional 14 urban centers. This expansion will increase the total number of cities covered by the FBR’s valuation system from 42 to 56, enhancing the breadth and accuracy of property assessments across the country.
This initiative forms part of the government’s broader strategy to modernize property valuation practices, ensuring that tax assessments are more reflective of true market values. The updated system is expected to improve transparency in real estate transactions and increase the effectiveness of revenue collection.
For those following fiscal reforms, recent updates to income tax rates and withholding tax regulations, effective from July 1, are also noteworthy. These changes complement the FBR’s ongoing efforts to refine and enhance the fiscal landscape.
The implementation of these new property valuation rates is likely to have significant implications for property owners, investors, and the broader real estate market, potentially affecting market dynamics and investment strategies in the coming months.
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