ISLAMABAD: The Federal Board of Revenue (FBR) is set to raise the valuation rates of properties by an average of 13% to 15% in different urban centers across the country.
According to details, this decision comes as part of the conditions set by the World Bank for the loan received by Pakistan.
The FBR will also expand the number of cities from 42 to 51 in this exercise, with the revised property valuation rates being notified accordingly, while the increase in rates will take effect from August 1, 2023, in consultation with provincial authorities.
Currently, the FBR’s property valuation rates apply to over 40 cities and towns in Pakistan.
These include major locations such as Karachi, Lahore, Islamabad, Faisalabad, and Peshawar.
With the upcoming revision, the valuation tables for all these cities will be adjusted upward by 13% to 15%.
Additionally, nine more cities and towns will be added to the valuation tables list.
The Punjab Board of Revenue has already communicated the instructions to all deputy commissioners and district collectors to prepare valuation tables for the fiscal year 2023-24.
To ensure consistency and coordination, representatives from the FBR will be involved in the process.
The FBR also aims to make the updating of valuation tables an annual practice to bridge the gap between the FBR’s notified rates and the existing market rates.
The revision of property valuation rates is a condition of the World Bank loan, known as the ‘Pakistan Raises Revenues (PRR) and RISE-II program,’ worth $400 million.
By increasing the valuation rates, the FBR intends to enhance tax collection from immovable properties.
However, it is worth noting that the FBR’s rates are still lower than the current fair market value.
Source: Geo News
