On Wednesday, the Federal Board of Revenue (FBR)
Increased the valuation rates of immovable properties, including residential apartments, commercial properties, and other real estate domains of 40 major cities.
Spike in valuation rates has also hiked up the transfer fee. This step has been accorded to collect more taxes from the real estate market.
Furthermore, the FBR announced to increase capital value tax in 40 cities. These cities include Chakwal, Dera Ismail Khan, Abbottabad, Attock, Bahawalpur, Bahawalnagar, DG Khan, Faisalabad, Ghotki, Hyderabad, Islamabad, Karachi, Kasur, Khushab, Lahore, Jhang, Gujranwala, Gujrat, Gwadar, Hafizabad, Jhelum, Mansehra, Mardan, Mirpurkhas, Larkana, Lasbela, Mandi Bahauddin, Multan, Rahim Yar Khan, Rawalpindi, Sahiwal, Nankana, Narowal, Peshawar, Quetta, Sargodha, Sialkot, Sukkur, Sheikhupura, and Toba Tek Singh.
It merits mentioning that the FBR’s existing valuation is close to 60 to 70 per cent of market rates. The upward revision will aid the FBR to bring its affairs in line with the current market rates.
Currently, Pakistan is the only country with three different types of property valuation rates – the DC rates, the FBR notified rates, and the ones that exist on the ground. It is an open secret that a property can be owned and registered at a value lower than the market rate, resulting in the parking of maximum wealth in the real estate sector.
Meanwhile, the FBR’s headquarter gave a deadline to submit updated valuation tables after approval by the committee led by the Chief Commissioners Inland Revenues, adding that the existing Statutory Regulatory Order (SRO) will be examined for this purpose.
The FBR officers were asked to point out anomalies in the existing valuation tables. The Board clarified that the officials concerned would be responsible for any unchecked anomalies.
Experts said that the FBR should have included representatives of real estate agents to get their input when revising valuation tables.