Islamabad: The Federal Board of Revenue (FBR) will revise to increase at least 20% of the valuation tables for property taxes in 21 cities, according to a news report. This revision had been planned for some time now but is only now being implemented.
The FBR has reversed the revisions made in January 2018, where rates were lowered. It has increased the rates from 15% to 25%. These would be applicable on property taxes for 21 major cities. The deputy commissioner (DC) rate will still be applicable to other cities.
In addition, the government has made filing tax returns obligatory for buying property. This move is aimed at discouraging untaxed transactions in the real estate market.
Officials stated that this new revision would allow FBR to collect PKR 5 billion to PKR 10 billion extra in taxes. These valuation rates currently amount to up to 60 % of the market value. FBR aims to take this figure up to 80%, with the cooperation of stakeholders.
Rates were revised upward by 20% and above in Islamabad, Lahore, Karachi, Rawalpindi, Peshawar, and Quetta. The range was lower at between 15% to 20% in Gujranwala, Gujrat, Sialkot, Sahiwal, Faisalabad, Multan, Abbottabad, Sukkur, Jhang, Sargodha, Bahawalpur, and Hyderabad.
The FBR official reiterated that rates would not go up to 100% of the market rate. He added that this amendment would reduce the flow of untaxed money in the sector.
