The Federal Board of Revenue (FBR) changed the valuation of real estate in several cities across the country after a two-and-a-half-year gap.
The assessment was extended to 19 new towns compared to the original 21. The total number of cities that fall under the RBF assessment now stands at 40.
According to the official assessment, real estate prices have increased by 10-15%. Some cities have seen a 100% increase.
The FBR has issued SROs for individual cities.
Appraisal is used to determine taxes on the sale and purchase of a property, and an increase makes real estate transactions more expensive. Estate agents and realtors have expressed reservations about the new rates and threatened to launch protests.
When the new PBO valuation was released on Thursday, the first reports suggested that the value of the Karachi property remained unchanged.
However, SAMAA TV later reported that property rates for Karachi had also increased.
In Karachi, the price per square meter of residential grade A-1 land has been increased by 31,000 rupees. Rates for buildings with two or more storeys have been increased by 25%. The price per square meter of residential properties built has been increased by Rs 43,000. Likewise, the valuation of open commercial land, commercial buildings and apartments has also been revised upwards.
At least 13 new towns in Punjab, three in Sindh, two in Khyber Pakhtunkhwa and one in Balochistan have been included on the list of cities where the RBF assessment is used for taxation.
Since the new valuation is pushing up taxes, real estate agents are not happy.
Ahsan Malik of the Pakistan Real Estate Consultants Association says real estate dealers are the real stakeholders in the real estate industry, but the government has failed to trust them.
“If the government does not withdraw these PBOs or consult with stakeholders to revise the scorecards, we will use the agitation to protest this decision,” he said. SAMAA TV.
FBR officials estimate the new appraisal brings official rates to 95% of the property’s market prices, but the real estate industry wants the appraisal to stay at around 75% of actual market value, SAMAAShakeel Ahmed said.