ISLAMABAD: In a major development, the Federal Board of Revenue (FBR) on Friday increased property valuation rates by an average of about 20% for 21 major cities of the country with immediate effect.
The Federal Board of Revenue notified the new property valuation rates. It also added more areas to the existing cities aimed at broadening the tax coverage.
The new valuation rates, which the FBR will use to calculate withholding and capital gains taxes when properties in notified areas are purchased and sold, are applicable from February 1, 2019. The average increase in valuations is around 20%, however, some areas have seen a considerable sharper revision in taxable rates. The valuation of immovable properties in some zones of the (DHA) Defence Housing Authority in Karachi has been increased up to 100%. The overall increase range is between 15% to 25%.
The list of major cities, FBR notified for new valuations rates, including Islamabad, Karachi, Lahore, Sukkur, Multan, Sialkot, Gujranwala, Faisalabad, Rawalpindi, Hyderabad, Jhang, Gwadar, Gujrat, Sahiwal, Bahawalpur, Sargodha, Abbottabad, Peshawar, Mardan and Quetta.
Because of the new valuation rates, the Federal Board of Revenue (FBR) is likely to increase 15% in the remaining period of the current fiscal year to Rs20 billion.
FBR spokesman said the revised property valuation rates have been brought around 60% of actual market valuations. Another re-evaluation phase will start from July this year to match the rates approximately 80% of market standards.
1234 areas/categories for Lahore have been added for property re-evaluation drive for tax collection. Residential and commercial properties have also been re-valued. For Rawalpindi, 28 areas and Islamabad’s 90 areas have been revised for valuation increase.