KARACHI: Property registrations for multi-story buildings in Karachi have come to a standstill following the Federal Board of Revenue’s recent notification on fair market values (FMVs) of immovable properties.

In a letter sent to the member operations FBR, Karachi Tax Bar Association (KTBA) said that Sub-registrars across the city have either stopped processing or are refusing to complete registration of sale deeds for residential, commercial, and industrial properties with multiple stories.

The confusion stems from the FBR’s Notification SRO 1724(I)/2024, issued on October 29, 2024, which fails to provide clear guidelines for determining FMVs of multi-story properties, marking a significant departure from the previous framework established under SRO 345(I)/2022, which had specific formulas for different property types.

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Under the previous system, residential properties saw a 25% increase in value for each floor above ground level, while commercial properties were valued at an additional 100% per floor. Industrial properties were assessed based on plot value plus the aggregate covered area of all floors.

“The current notification’s silence on multi-story valuations has created a void that’s open to individual interpretation,” KTBA said.

“This ambiguity is particularly concerning for properties with mixed usage, which previously had clear guidelines for value determination,” it said.

It said that the continued uncertainty could negatively impact government revenue collection, urging FBR to issue an immediate explanation with practical examples for each property type to prevent further disruption in the property market.

Copyright Business Recorder, 2025