FBR revises property valuation rates in 56 cities

The revised property valuation rates will come into effect from November 1

Business Desk - Oct 30, 2024

A representational image. — Depositphotos

The Federal Board of Revenue (FBR) on Tuesday revised property valuation rates by up to 80% across 56 cities in Pakistan to boost revenue collection and steer investment towards more productive economic sectors.

The revised rates, which come into effect from November 1, include 12 new cities such as Bannu, Chiniot, Kotli Sattian, and Ghora Gali.

FBR Chairman Rashid Mahmood Langrial stated, “The valuation rates were moderately revised upward.” The changes in property valuations were determined based on factors such as property type, location, and other variables.

The FBR previously revised property valuations in 2018, 2019, 2021, and 2022.

The updated rates, available on the FBR’s official website, will be applied to federal taxes including capital gains tax (CGT) and withholding tax. In Pakistan, property taxes are often based on the collector’s declared value rather than the actual transaction value, which is common in other countries.

The FBR collects withholding taxes under Sections 236C, 236K, and 7E of the Income Tax Ordinance, along with a 5% federal excise duty on property transactions imposed in the last budget. In addition, provinces have raised district collector (DC) rates for property transactions.

List of cities where property valuation rates have been revised upwards: