ISLAMABAD: The Federal Board of Revenue (FBR) has announced that it will update the valuation tables for immovable properties in Pakistan from July 1, 2023.
The FBR has initiated the process in consultation with provincial authorities and has issued a notification for the constitution of committees for property valuation, including new housing schemes, residential, and commercial projects.
Furthermore, the Regional Tax Offices (RTOs) have been directed to update the existing valuation tables of immovable properties already notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001.
The committee’s terms of reference include updating the rates already notified in the valuation tables, recommending rates for areas/cities where fair market values have not previously been determined, and adopting the “Square Yard” as a unit of measurement for uniformity.
Moreover, the FBR has also requested a consultation with Real Estate Associations in the area and stakeholders to address their grievances through the association.
The Federal Tax Ombudsman’s (FTO) recommendations and directions on existing valuations will also be considered for new valuations.
As per the details, the FBR is pursuing the Pakistan Raises Revenue Project (PRRP) for taxation reforms under the World Bank’s auspices.
One of the most significant components of the project aims to harmonize the valuation of immovable properties between FBR and provincial governments/districts.
