FBR to increase property rates in 42 major cities of Pakistan

ISLAMABAD: The Federal Board of Revenue (FBR) is set to increase valuation rates of immovable properties in 42 cities across Pakistan this month, aiming to align them with fair market values.

According to sources, the FBR has proposed revisions in property valuation rates for 42 cities, taking into account the location and fair market value of different areas within each city.

The 42 Cities to be Affected by FBR Property Hike

The affected cities include major urban centers such as Abbottabad, Attock, Bahawalpur, Chakwal, Dera Ismail Khan, Dera Ghazi Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafiz Abad, 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, Sargodha, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.

The move aims to bring property valuation rates in line with current market prices, ensuring a more accurate and transparent taxation system. The revised valuation rates will impact property transactions, taxation, and investment in these cities.

In a separate development, the FBR has issued a Statutory Regulatory Order (SRO) notifying the collection of Federal Excise Duty (FED) on property.

According to the SRO, a 3% duty will be collected from filers, 5% from non-filers, and 7% from those not on the active taxpayers list. The FED will be collected at the time of allotment or transfer of commercial property, first allotment or first transfer of open plots or residential property, and date of acquisition of the property.

This move aims to increase revenue collection and bring more transparency to property transactions.