FBR increases rates of immovable property across the Country

 The Federal Board of Revenue (FBR) has jacked up valuation rates of immovable property in the range of 15 to 25 percent on an average in all the major cities of the country in a bid to increase tax collection up to Rs75 billion. In some of the post areas of Karachi, the rate has increased from 15% and going up to 110% depending on the locality of the area. FBR increased the valuation rates up to 110 percent for DHA phase 7 and 8 in Karachi while in other areas of the metropolitan city, the valuation rates were increased in the range of 15 to 25 percent on an average in 20 major cities of Pakistan. FBR Member Inland Revenue Service (IRS) Policy Hamid Ateeq Sarwar stated,

“We hope that the tax collection on the property can go up from the projected Rs50 billion level to Rs70-75 billion with this rise in valuation rates,”

Despite the increase in valuation rates in immovable property in Karachi, there is still a gap of 40 percent and in second expected jerk in July, the FBR will further increase the valuation rates in order to remove the existing distortions among the market rate, DC rates notified by the provinces and valuation rates notified by the FBR.

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