In an attempt to determine the fair market of value of real estate in Karachi, the Federal Board of Revenue (FBR) has released new property valuation tables. The prime purpose of this revision is to fix the difference between Deputy-Commissioner (DC) Rate and the real-time market price of property in the city by the sea.
It is important to note here that the deadlock in negotiations between real estate representatives and the government officials was due to the difference between fair market value of property determined by real estate stakeholders and those calculated by FBR surveyors. However, the matter has been resolved now.
For setting an acceptable fair market value of property in Karachi for the purpose of tax calculation, the city has been divided in eight categories. The categorisation was done on the basis of how expensive a particular area is with properties in Category A-1 marked at the highest rate and those in Category VIII tagged at the lowest.
In Category A-1, FBR has included open commercial plots located on Abdullah Haroon Road, I.I. Chundrigar Road, Shahrah-e-Faisal, Bombay Bazar, Bhori Bazar, Queens Road, Zain-ul-Nisa Street, Joria Bazar, Marriot Road, New Challi, Pakistan Employee Cooperative Housing Society, Railway Quarters, Saleh Mehmood Street, Siraj Quarters and Sarafa Bazar. The value of commercial plots, as determined by FBR for the purpose of tax calculation, in the mentioned areas is PKR 100,000 per yard2.
The housing societies that fall in Category A-I include Clifton Quarters, Bath Island, DHA Phase I, II, III and V, Civil Lines, Dhoraji Cooperative Housing Society, Garden East Quarters, KDA Officers Housing Society, KDA Scheme 1 and 1A, Karachi Administrative Cooperative Housing Society, Karachi Cooperative Housing Society, Muhammad Ali Cooperative Housing Society, Pakistan Employees Cooperative Housing Society, Sindhi Muslim Cooperative Housing Society, and Upper Gizri. The new valuations of open residential plots in these societies is PKR 35,000 per yard2.
According to the document released by the FBR, commercial and residential open plots in Category I will be valued at PKR 75,000 per yard2 and PKR 25,000 per yard2 respectively for calculating property tax. While in Category II, the property rate will be PKR 60,000 per yard2 for open commercial plots and PKR 12,000 per yard2 for open residential plots.
For commercial and residential open plots that fall in Category III, the new values will be PKR 25,000 and PKR 6,000 per yard2 respectively. And the new rate of open commercial plots falling in Category IV will be PKR 19,000 per yard2 and that of residential property will be PKR 5,000 per yard2.
More details regarding new rates set for flats, buildup and open commercial, residential and industrial properties as well as areas falling in other categories will be shared in our next blog. So stay tuned for that! Meanwhile, if you wish to have a say on the stated information, feel free to use the comments section below.
Related News
Since every Plot has it own worth so it is not possible to treat all plots in same value(table). For example values issued by FBR commercial plots in PIA society Lahore is 1,096,000 per Marla so it meas that commercial plots now charged withholding tax on new rates. So plot(10 Marla commercial) on the main Pia road worth around 600 lacs and plot inside of society worth 90 lacs will be treated alike which is unjust and not helpful to extinguish black money /market in real state and negates all Govt claims .
IF GOVT really wants to make property market transparent once for all then Govt must :-
1- Reduced tax to many times .
2- Govt of Pakistan MUST believe their own citizens, yes if Govt accept the value both buyer and seller agreed in agreement of sale ,in this situation seller claims only what is revealed in agreement as his white money( in future) and same as for the purchaser as his source will from white money. In this condition both seller and buyer will fight to declare the true amount as this declared money will be white for both of them. i.e if someone send 10 million from abroad his money will remain white as he buys the property on the amount which will remains for him and seller white in future. {the agreement of sell in this condition will be issued by Govt and the sole proof for white money before FBR, for both buyer and seller}.
Hi Samra,
I have downloaded new valuation rates from FBR website but I am not able to find Bahria Town Karachi details in it. Can you please assist based on your knowledge if Bahria Town Karachi will be included in Government CGT and CVT ?
can u share the link to download valuation rates?
You may download the official rates list from this link:
http://www.zameen.com/blog/property-valuation-tables-for-major-cities-in-pakistan.html
what would be cost of 500 square yds home for Category A-1? either it is for only fixation of Tax rate or seller is bond to sell as per above stated criteria …. thanks
dc rate has been announced..increased almost 150,000 lac per marla..that mean if before registry of 03 marla home worth 900,000, now increased to 1,350,000.. what will tax amount for buyer..
total 1,3500,000*5%=67,500/-
no with holding tax as property less than 04 (M)… am i right or any addtion
These policy makers don’y know how to take care investors and investment. It’s better for me to get out rest of my investment and bring back UAE,
Hell with these taxes because what we get in return?
Exactly this is what we hard working Pakistanis want!! Pakistan doesn’t want your black money which not accounted for!! Unbelievable besharami by mafia n crooks.
Black Money??? Dear. All sheeps are not black. Most of us are Pakistanis, living abroad and earning HARD EARN money. A lot harder than what it takes to earn that in Pakistan.
This seems is their strategy to move the investment out of Pakistan…..Shame…….
what about the property that was bought on higher rates how it can be decreased per new FBR evalutae table?
What areas are included in category II, III & IV
What would be the cost of 300sqyds flat in defence phase v karachi
Hi All.
Can somebody tell me how FBR control society transfer sales purchase those are not going DC office for registry. .even government doesn’t know about these deals. Then how they imposed new valuation rates and 3 year sale condition. …
Please put some light on this…
REGARDS
Rizwan Ali khan
New rates (as per valuation table from FBR) are almost 3 to 5 times higher than the old DC for most areas in Karachi. Morover, tax percentages are also inrcreased by 2 times in general. So now we are talking about almost 4-5 times increase all together in the total amount needed for property transfer/registry. For example, if some property was transfered/registered in 1 Lac previously, now it will take around 3-4 lacs for the same property and adding 1-2% estate agent commision will drive small investor crazy.
Having said that, the overall property price should be dropped by atleast 20-30% to compensate the new taxes and this was the whole idea concieved by the finance ministry to controll the “unrealistic” hike in property in last couple of year. The immediate impact of the new taxes is already visible in the property market by a sharp decrease in number of transactions since 1st July and the rest of the impact is still to come in coming weeks and months.
what is the rate for residential building at garden east, sector 38/39.