ISLAMABAD: The Federal Board of Revenue (FBR) Tuesday substantially raised values of immovable properties up to 75 percent of the existing market values in 56 cities of the country.
The new values of immovable properties would be applicable from November 1, 2024.
The FBR has issued notifications after having a series of meetings with the developers and builders at the FBR headquarters. Taking into account serious reservations of developers and builders, the FBR has revised rates across the country.
According to the notifications issued late Tuesday night, in exercise of the powers conferred by sub-section (4) of section 68 of the Income Tax Ordinance, 2001, the FBR has determined new fair market value of immoveable properties in respect of areas or categories specified. The fair market value of the super structures for residential, commercial and industrial areas/properties have also been notified in each city.
Immovable properties: FTO sets deadline for revision of valuations
The FBR had previously adjusted property valuations four times, in 2018, 2019, 2021 and 2022. After a gap of over 2 years, now the FBR has issued the fresh values of immovable properties.
Through these notifications, the FBR has made a major increase in the values of immovable properties to bring them at part with the actual market value.
The FBR has issued enhanced values of the immovable properties after vetting from Law and Justice Division.
There are cases where the values have been raised by 75 percent. The values of commercial, industrial and residential properties have been separated under the new notification.
In this regard, the FBR has finalised its revised valuation tables for all major cities. The FBR has attempted to increase property valuation rates to bring them closer to market values. The FBR did not raise property valuation rates last year. The property values, presently around 75 per cent of market value, have been further increased to nearly 75 percent of estimated market rates.
Through new notifications, the valuation rates of properties in 56 cities has been revised upward including 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 Federal Tax Ombudsman (FTO) has given a deadline of October 11, 2024 to the FBR for revision of values of immovable properties across the country.
Copyright Business Recorder, 2024