The Federal Board of Revenue (FBR) has notified a significant increase in the values of immovable properties in more than 20 cities for the ongoing financial year.
The tax watchdog has increased the property valuations between 10-30% on average. The FBR has included rural areas as well to bring them in line with the property rates approved by the respective District Collectorates (DCs) Property Valuation.
The latest SRO issued by FBR in this regard states,
In the exercise of powers conferred by subsection (4) of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001) and in supersession of its Notification No. S.R.O. 361(I)/2022, dated the 2nd day of March 2022, the Federal Board of Revenue is pleased to determine the fair market value of immovable properties.
The cities where property valuations have been jacked up include Sheikhupura, Faisalabad, Bahawalnagar, Chakwal, Gujranwala, Hafizabad, Haripur, Jhelum, Bahawalpur, Khushab, Lasbella, Gwadar, Lodhran, Mandi Bahauddin, Multan, Rahim Yar Khan, Sargodha, Toba Tek Singh, Jhang, Sahiwal, Islamabad, Rawalpindi, Attock, and D.I. Khan.
The move from FBR comes as part of the requirements of the $400 million loan by the World Bank titled “Pakistan Raises Revenue.” The board, however, has clarified that the revised property valuations are still below the current fair market prices.
Previously in March, FBR had reduced the values of immovable properties in 40 cities, bringing down the exorbitant market values fixed in December last year.