The Federal Board of Revenue (FBR) has proposed a massive increase in the value of immovable properties in 18 major cities of the country for tax collection on the commercial and residential property transactions.
The board has also solicited comments and recommendations from the stakeholders till June 30, 2019, at the email address: secy.itb@fbr.gov.pk. The new revised rates will be applicable from July 1st, 2019.
Under the revised rates, the hike in the average valuation rate has been made in the range of 25 to 35 percent. The property valuation rate has been increased from 60 percent to an average of 85 to 90 percent in view of the fair market value of properties based on the locations in respective cities.
Cities, for which the hike in property valuation rate has been proposed, include Islamabad, Hyderabad, Gujrat, Faisalabad, Bahawalpur, Abbottabad, Jhang, Jhelum, Mardan, Lahore, Multan, Peshawar, Rawalpindi, Sahiwal, Sargodha, Gujranwala, Sialkot, and Sukkur.
In Islamabad, the FBR has fixed the per square foot valuation for construction under five years old as Rs. 1500 and Rs. 1000 for properties over five years old for the residential areas. As for the commercial areas, the valuation rate has been fixed as Rs. 2000 for five-year-old construction and Rs. 1500 for more than five-year-old construction.
Moreover, the highest valuation rate has been determined for Sector E-7, i.e., Rs. 148,000 while I-16 Sector has a lower valuation rate of Rs. 26,400.
Here are the FBR-proposed new property valuation rates:
Islamabad
Abbottabad
Bahawalpur
Hyderabad
Gujrat
Faisalabad
Jhang
Jhelum
Mardan
Lahore
Multan
Peshawar
Rawalpindi
Sahiwal
Sargodha
Gujranwala
Sialkot
Sukkur