FBR Set to Increase Property Valuation Rates in Major Pakistani Cities

Islamabad: The Federal Board of Revenue (FBR) is poised to implement a significant increase in the valuations of immovable property, with rates expected to rise by up to 75% today. This adjustment will affect properties in 42 major cities, reflecting an effort to align property values more closely with current market conditions after a freeze on valuations last year.

According to Zameen.Com, the FBR has completed the revised valuation tables for various property categories including commercial, industrial, and residential sectors. These changes are in response to directives from the Federal Tax Ombudsman, which required an update to property valuations across the nation by today. Notifications of these updates have been circulated to the Law and Justice Division for vetting and are anticipated to be enacted immediately.

This reform is part of a broader effort by the FBR to enhance the transparency and fairness of the taxation system. Property values, which previously were capped at about 75% of the market value, are set to increase to a range of 80% to 90%. The new valuations will also differentiate more clearly between types of properties, tailoring rates to better reflect specific market dynamics in cities such as Abbottabad, Lahore, Karachi, and Islamabad.

Historical adjustments by the FBR saw property values increase substantially in most cities since 2018, with the exception of areas like Gwadar, where values decreased. This pattern underscores the FBR’s ongoing commitment to maintaining an equitable tax system and adapting to economic conditions across the country.