Federal Board of Revenue (FBR) has proposed the big increase in value of immovable properties in 18 big cities of Pakistan for tax collection on commercial and residential property transaction. FBR New Proposed Property Valuations for all Citizens in Pakistan.
The board has solicited the comments and recommendations from stakeholders till 30 June 2019 at email address. The new revised rates will be applicable from 01 July 2019. Due to revised rates, the hike in the average valuation rates made in range of 25 to 35 percent. The rate of the property valuation has been increased from 60% to the average of 85 to 90% because of the air market values of properties on the basis of the locations in the respective cities.
The government has proposed the hike in the property valuation rate for the cities like Islamabad, Gujrat, Hyderabad, Bahawalpur, Rawalpindi, Faisalabad, Abbottabad, Jhelum, Gujranwala, Sahiwal, Peshawar, Sargodha, Sialkot, Lahore, Mardan, Jhang, Sukkur and Multan.
The FBR has fixed the per square foot valuation of the property for construction under 5 years old as Rs.1500/- and Rs.1000/- for properties over 5 years old for residential areas. For the commercial area, FBR has fixed the valuation rate of Rs.2000/- for 5 years old construction and Rs.1500/- for over 5 years old construction.
The highest valuation rate has been determined for Sector E-7 is Rs.148,000/- and I-16 sector has the lover valuation of Rs.26,400/-.