ISLAMABAD: The Federal Board of Revenue (FBR) revised on Thursday property valuation rate in 40 major cities across the country compared to previously notified rates that were performed on December 1, 2021.
When the property rates were last assessed, the FBR had increased the assessment by 600-700% depending on the areas of the respective cities, but it could not implement the new rates. Now, the assessment rates, including commercial, residential, apartment, apartment and other areas of 40 major cities, have been revised again, and on average, the revised property assessment range was between 25% and 250%. However, in some areas of Lahore, the FBR has increased the notified rates by 400% as per the revised notification with effect from March 2, 2022. In Karachi, there is one area where the property assessment rate has been increased in several ways. Property assessment coverage has been increased from 20 to 40 cities.
The valuation table was first notified separately during the PMLN-led regime when it was set at 20 to 25 percent of market rates. The second time it was revised again during the tenure of the PMLN. In December 2021, the valuation rate was massively revised upwards, but now it has been revised downwards.
Under the World Bank (WB) loan condition for securing $400 million for Pakistan Increases Revenue (PRR), the RBF has increased the valuation rates to bring it in line with the rates of the Marlet. There are three different property rates, including DC Notified Rates, RBF Assessment Rate, and Market Rates. When the FBR notified property valuation rates on December 1, 2021, real estate tycoons and real estate agents cried out and demanded that the government revise them downwards. Representatives of the Real Estate Consultants Association (RECA) met with Finance Minister Shaukat Tarin and convinced him to lower valuation rates. As a result of the meetings, the chief commissioners of the FBR of the respective cities were instructed to hold consultations and the tariffs were revised downwards.
The assessment tables have been revised to collect more taxes on the real estate sector. RBF increased the ratings of 40 selected cities. RBF has released rating tables for Abbottabad, Attock, Bahawalpur, Bahawalnagar, Chakwal, Dera Ismail Khan, DG Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur , Khushab, Lahore, Larkana, Lasbella, Mandi Bhauddin, Manshera, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.
In the case of Islamabad, the assessment rate for E-7 has been revised down to Rs 150,000 for any size from the earlier rate of Rs 250,000 per square meter, the F-6 rate has been set at Rs 140,000 for any size from the previously notified rate of Rs 200,000 per square meter, the F-7 rate has been set at Rs 140,000 for any size from a previously notified rate of Rs 350 000 per square meter, E-11/3-4 has been set at Rs 70,000 for any size against Rs 110,000 per square yard, B-17 (without possession) any size Rs 12,000 against a previously notified rate of Rs 55 000 per square meter, D-12 Rs 100,000 for any size against Rs 100,000 per square meter, F-8 rate has been set at Rs 130,000 for any size against Rs 200,000 per square meter. The Bani Gala rate has been set at Rs 28,000 for any size of plot against the previously notified rate of Rs 36,363 per square meter. It has fixed Rs 115,000 for any size in F-10, Rs 110,000 for F-11, Rs 18,000 for F-15 if owned, Faisal Town Rs 15,000, G-17 Supreme Court Housing Society Rs 20,000 , Bahria Town from phase 1 to 6 Rs 34,000 for any size, Pakistan Town Rs 18,000,
In Islamabad, the value of residential and commercial superstructure will be – (a) Rs.2000 per square foot if the superstructure is up to five years old and (b) Rs.1000 per square foot if the superstructure is more than five years old . For Islamabad Blue Zone shopping area on Jinnah Avenue, shop value was set at Rs 48,611 per square meter, for shop on Fazal-e-Haq Road Rs 45,139 per square meter, Melody shop Ground floor market Rs 30,556 per square meter, Aabpara market Rs 30,556 per square meter.
In the case of Karachi, the FBR divided all areas into different categories and explained that the values in the tables are in rupees; (ii) The value is per square meter of the covered area of the ground floor plus the covered area for the additional floors; (iii) The built value of a commercial property is per square meter of ground floor covered area plus the covered area of additional floors, if any; (iv) The value of built industrial property is per square meter of the total plot area plus the covered area of the plot per square foot; (v) The value of a residential building consisting of more than one storey will be increased by 25% for each additional storey, i.e. the value of each storey other than the ground floor will be calculated 25% of the value of the ground floor; (vi) A property which does not appear to belong to one of the categories shown in the schedule below will be deemed to belong to the lowest adjacent category in the schedule; (vii) Whether the land was granted for more than one purpose, viz. residential, commercial and industrial, the valuation in such a case will be the prescribed average/average rate; (viii) Apartment means the covered residential building having a separate property number/sub-property unit number; (ix) In a multi-storey residential building, an additional floor will be charged if it includes a bedroom and a bathroom; (X)
Rates for basements of commercial properties integrated into categories I, II and IV will be Rs. 13,500 per square meter; and (xi) Tall Buildings at Schedule Serial No. 44 means a building with stories above ground plus five. (xii) The value of residential built property (including basement and first floor) may be reduced according to criteria up to 5 years of age of the building structure no reduction is permitted, from 5 at 10 years, 5 10% reduction will be authorized, from 10 to 15 years, 7.5% reduction is authorized, 15 to 20 years, 10% reduction is authorized and beyond 20 years the rate of the plot open will be applied.
In Rawalpindi, the valuation of property in Satellite Town is set at Rs 2.4 million in residential area and Rs 5 million in commercial area, DHA-1 Rs 740,000 per marla and Rs 4.4 million for commercial area, DHA Valley Rs 125,000 per marla in residential area and Rs 575,000 per marla in commercial area, Bank Road Murree Rs 2.9 million for residential area and Rs 5 million for commercial area, Lalazar Wah Rs 1.3 million for residential area and Rs 2.1 million for commercial zone, Aslam Market Wah Rs 1.6 million for residential zone and Rs 2.3 million for commercial zone, Mumtaz City Rs 849,600 per marla for residential zone and Rs 7.9 million for commercial zone.
In Gawadar town, property valuation has been set at Rs 17.7 million per acre on Airport Road land, Coastal Highway Washendor Rs 4.9 million per acre and SHS Commercial Rs 16.318 million per acre.
The representatives of the Real Estate Consultants Associations, Sardar Tahir and Ahsan Malik, told this secretary that the FBR had notified the appraisal rates with the understanding that these rates would remain applicable for the next fiscal year 2022-23, as recommended by the Standing Senate Committee on Finance and Revenue. . They said there were still discrepancies in the notified fares in parts of Lahore and Sialkot which were above market fares, so they appealed to the FBR to revise their fares downwards.