ISLAMABAD: The government is set to make a significant adjustment to property valuation rates for taxation purposes, aiming to align them more closely with the market value.
This decision, reached in principle, is expected to be implemented starting next month.
According to a senior tax official, the upcoming changes in property valuation tables will be in effect from September.
The revision of property values has been a task undertaken by the Federal Board of Revenue (FBR) since 2016.
However, real estate stakeholders have raised concerns and objections over the prospect of further increases in property values.
The FBR has been responsible for determining a property’s fair market price to facilitate the taxation process.
This valuation process has a significant impact on the amount of tax individuals or entities are required to pay based on property ownership.
Typically, in provinces, the valuation table is formally announced by the district collector under Section 27-A of the Stamp Act 1899.
The tax official mentioned that the ongoing work to reevaluate property values in more than 50 cities is anticipated to be concluded within the current month.
The official further stated, “We will make efforts to implement the changes from September 1.”
Amid these developments, Zubair Tiwana, the Chairman of FBR, met with a delegation from the Federation of Realtors Pakistan and assured them of all possible support and facilitation.
As the government seeks to balance revenue generation and economic stability, the impending changes in property valuation rates have drawn both attention and apprehension from the real estate sector.
Source: DAWN
