FBR to increase Pakistan immovable property valuations by up to 75%

FBR is set to issue notifications on 25 October, finalising revised valuations for more than 50 cities including Karachi and Lahore
An undated image of the Federal Board of Revenue (FBR) building in Islamabad. — APP
An undated image of the Federal Board of Revenue (FBR) building in Islamabad. — APP

The Federal Board of Revenue (FBR) is gearing up to increase the immovable property valuation by up to 75% from the existing market value.

This significant change in Pakistan’s property market aims to address the disparity between property valuation rates and actual market prices.

What is property valuation? 

Property valuation is the process of estimating a property’s value. FBR adjusts the valuation rates periodically to reflect market fluctuations to ensure that property owners pay correct taxes and buyers and sellers engage in fair deals. Accurate valuations ensure fair taxation and transparent property transactions. 

FBR's decision and notification timeline for property valuation 

According to ProPakistani, FBR will issue notifications on 25 October, finalising revised valuations for more than 50 cities, including metropolitan cities Karachi and Lahore. 

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The Federal Tax Ombudsman previously set October 11 its deadline for revises immovable property values for 42; however, with the number of cities increasing to 50, the notification was delayed. Notifications are to be vetted by the Law and Justice Division. 

Cities affected by FBR's latest property valuations

Revised FBR valuations for the immovable property would impact cities including:

Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, DG Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sarghoda, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.

This change would be significant among proprietors, buyers, and sellers and the impact of the new valuation rates will be seen in the immovable property market as the increase would be critical to adequately interface with either the market or your client's property market.

The proprietors would pay more taxes, and such an increase would also adjust the pricing expectations of the buyers and sellers.