FBR raises property valuation rates in 20 cities

Headquarters of the Federal Board of Revenue in Islamabad. — APP/File

ISLAMABAD: The Federal Revenue Office (FBR) increased property assessment rates in over 20 cities ranging from 10-30% on average and also included some rural areas to bring them up to par with DC rates in the current fiscal year .

Under the $400 million World Bank (WB) loan titled “Pakistan Raising Revenues (PRR)”, the revision of property valuation tables in a state is attached. Revised assessment rates will allow for more property taxes to be collected. However, the rates notified by the FBR are always lower than the existing fair market value.

Now the RBF began revising property valuation tables in different cities silently upwards in the current fiscal year 2022-23. During the tenure of the PTI regime, some suburbs of the Islamabad Capital Territory (ICT) were excluded from the domain of the FBR and the then ICT Deputy Commissioner massively reduced the valuation of properties for providing benefits presumed to certain political elites. Now the FBR has reversed it and included parts of ICT in the revised assessment rates.

The FBR has now revised upwards the real estate assessment rates for cities, including rawalpindi, Dera Ismail Khanand Offensive in its latest published SRO. Previously, Council had revised upwards the assessment rates for properties in Sheikhupura, Faisalabad, Bahawalnagar, Chakwal, Gujranwala, Hafizabad, Haripur, Jhelum, Bahawalpur , Khushab, lasbelle, Gwadar, Lodhran, Mandi Bahauddin, Multan, Rahim Yar Khan, Sargodha, Toba Tek Singh, Jhang, Sahiwal and Islamabad.

When FBR Inland Revenue (Policy) member Afaq Ahmed Qureshi, who is also an official spokesperson, was contacted, he said they had reviewed property assessment rates in 40 cities and decided to put them at the same level than the assessment rates reported by the respective DCs. in their fields.

He said that the FBR had brought all these areas under the rating tables where the DC had notified the rates. The Statutory Regulatory Order (SRO) issued by the FBR on 13 September 2022, stated that in exercising the powers conferred by subsection (4) of section 68 of the Income Tax Ordinance 2001 on Revenue (XLIX of 2001) and in lieu of its Notification No. SRO 361(I)/2022, dated 2 March 2022, the Federal Board of Revenue is pleased to determine the fair market value of immovable property with respect to relates to areas or categories of Rawalpindi district.

The FBR included Tehsil Taxila localities located in Wah Cantt, Lala Zar, new city phases, Kohistan enclave, Aslam market as well as housing companies near Islamabad new airport such as Mumtaz City, Top City, EIGHTEEN, Adyala Road, Chakri Road, Gujjar Khan, Murree, New Murree, Kotli Satian and Kallar Sadian areas.

For Dera Ismail Khan, FBR notified valuation charts including Bannu Road, Circle Road, Inside Circle Road, Saddar Bazar, Chashma Road, Diyal Road, Tank Road, Multan Road, Draban Road, etc.

For Offensive city, the FBR issued detailed 139-page assessment tables and included many parts of the city in accordance with the notified rates. In Gwadarthe FBR notified revised rates on August 1, 2022 and released 24 pages of detailed real estate valuation rates in different parts of the city.