The Federal Board of Revenue (FBR) is set to increase Property Valuation Rates in 42 major urban cities across Pakistan, with hikes ranging between 20 to 100 percent, depending on the ‘fair market value.’ The FBR has finalized its revised Property Valuation Rates and is forwarding them to the Ministry of Law for approval before formal issuance.
The updated Property Valuation Rates are expected to be announced within the month, following a two-year hiatus. The last revision in rates took place on September 13, 2022. According to top FBR officials, the new rates will vary based on the location and market value of different areas within the 42 cities. FBR decides to increase the number of cities from 42 to 56 after adding 14 more cities in the next phase. In the meantime, the FBR will revise the property valuation rates upward in the existing 42 cities, which include , Bahawalpur, Narowal, Dera Ghazi Khan, Ghotki, Gujranwala, Gujrat, Gwadar, Haripur, Chakwal, Hyderabad, Islamabad, Rawalpindi, Jhelum, Karachi, , Khushab, Lahore, Larkana, Abbottabad Lasbela, Lodhran, n, Mansehra, Mardan, Mirpurkhas, Multan, Jhang, Nankana, , Peshawar, Quetta, , Sahiwal, , Sialkot, Sukkur, and Toba Tek Singh, Dera Ismail Khan, Faisalabad, Attock, Kasur, Hafiz Abad, Mandi Bahauddi, Sheikhupura, Sargodha, Rahim Yar Khan. In the future, the FBR aims to revise Property Valuation Rates more regularly to align with the real estate sector’s potential.
Additionally, the FBR plans to expand the list of cities covered by its valuation rates by adding 14 more cities, bringing the total to 56. Cities like Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Quetta are among those affected by the upcoming changes.
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In a significant regulatory update, the Federal Board of Revenue (FBR) has issued a Statutory Regulatory Order (SRO) to impose a new Federal Excise Duty (FED) on property transactions across Pakistan. The FED will be applicable during the allotment or transfer of both commercial and residential properties. The rates have been set at 3 percent for tax filers, 5 percent for non-filers, and a higher rate of 7 percent for individuals not listed on the active taxpayer register. This move is part of the FBR’s broader strategy to enhance tax compliance and revenue generation within the real estate sector, targeting property investors and developers to ensure greater financial transparency and accountability.
The new FED rates will impact property buyers and sellers, particularly those who are not registered taxpayers, as the government continues to tighten its regulatory framework to combat tax evasion and increase the tax base. Property market stakeholders are advised to stay updated on these regulatory changes to avoid any unexpected costs or penalties during transactions.
