FBR to hike property valuation rates by up to 100% in 42 cities

Pakistan, September 10, 2024: The Federal Board of Revenue (FBR) is all set to increase property valuation rates from 20% to 100% in 42 cities nationwide. The extent of the increase will depend on the respective area’s fair market value.

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According to the details, the FBR officials have finalized the latest valuation rates, which will soon be presented to the Ministry of Law for approval. Moreover, the updated rates will be applicable within a month of approval. This is the first valuation update after September 2022.

Initially, the increased valuation rates are applicable in Attock, Abbottabad, Bahawalpur, Chakwal, Dera Ismail Khan, Dera Ghazi Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana Sahib, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur, and Toba Tek Singh.

FBR plans to add 14 more cities to its urban valuation system in the next phase, bringing the total number of cities to 56 from 42.

FBR wants to maximize tax revenue by ensuring transparency. However, the revised valuation rates will increase tax rates, increasing real estate prices. The experts predict a massive real estate market slowdown amid this property valuation hike.

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Stay connected with RBS for more updates on property valuation rates.