FBR communicates new valuation rates for immovable properties in 20 cities

The Ministry of Law has given a green signal to the Federal Board of Revenue's (FBR) proposed valuation table rates for immovable properties in 20 cities, a news source detailed. The new rates, for which the board started a real estate stakeholder consultation process in June, will be implemented on all property transactions carried out in their relating areas from today (Wednesday) onwards. 

The board has issued separate valuation table notices for Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, Quetta, Gwadar, Hyderabad, Bahawalpur, Faisalabad, Multan, Gujranwala, Abbottabad, Gujrat, Sargodha, Sahiwal, Jhelum, Jhang, Mardan, and Sukkur – available in PDF archives on its official site. 

The rates informed in the new tables remain between 80-85% – in totality – of their separate properties' fair market valuations. If it's not too much trouble note that before July 2016, all charges material on properties were gathered by the District Collector's (DC) rate – which, until a couple of years back, added up to just 10% of properties' fair worth. 

With this amendment, the FBR expects to bring the rates at which government charges on land are collected at standard with their relating genuine market rates – in order to close a regulatory loophole which permitted tax evaders to 'whiten' their corrupt cash. Through this measure, the board plans to gather extra income of PKR 40 billion from the property part during (financial year) FY2019-20. This is the second time that the FBR has updated its property valuation rates since February this year.

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