On Tuesday, the Federal Board of Revenue (FBR) issued a notification for further increase in valuation rate of properties for 20 cities. Govt has decided different valuation rates for residential, commercial, industrial and flats categories. The FBR high-ups claimed that the valuation rates were jacked up on average from 50 percent to 85 percent.
High-ups of FBR has confirmed it officially that the valuation rates were increased on average from 50 percent to 85 percent.
FBR Hikes Property Valuation Rates for 20 Cities
The major 20 cities include Abbottabad, Bahawalpur, Faisalabad, Gujrat, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Lahore, Mardan, Multan, Peshawar, Quetta, Rawalpindi, Sahiwal, Sargodha, Gujranwala, Sukkur, and Gwadar.
For the very first time, Jhelum has been added in the list, but FBR didn’t notify new rates for Sialkot.
The Tax authorities have revised the property valuation rates for the second time in six months, as in February 2019, the government had also increased the average rate by 20% to 55% of the market value. With the latest increase, the FBR rates reached around 80 percent of market value.
The valuation rates will come into force with effect from today (Wednesday). The rates have been increased for the federal tax collection on sale and purchase of land and apartments. The Federal Board of Revenue (FBR) has notified the new rates for 20 cities but six cities notification is still under consideration.
FBR Member Inland Revenue Policy Dr. Hamid Ateeq Sarwar:
“After the fresh increase, the property valuation rates are now around 85% of the fair market value,”
The increase in valuation rate will definitely disappoint real estate agents and traders but the purpose behind it is to generate an additional Rs40 billion in tax revenues in this fiscal year.
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Source: Express Tribune