- FBR will increase the assessment rates of properties from 13% to 15%.
- The number of cities will be increased from 42 to 51 in the ongoing exercise.
- Revised rates to help collect more tax from immovable property.
Islamabad: Under the loan terms of the World Bank, the Federal Board of Revenue (FBR) has decided to increase the assessment rates of properties in various urban centers of the country from an average of 13% to 15%.
It has also been decided that the number of cities will be increased from 42 to 51 in the ongoing exercise, under which enhanced property valuation rates of FBR will be notified.
Top official sources confirmed to The News on Monday, “We are working on increasing the assessment rates of properties from August 1, 2023, in consultation with provincial authorities.”
Currently, FBR fixed property valuation rates are applicable in more than 40 cities/towns in the country, including Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, Dera Ghazi Khan, Faisalabad, Ghotki, Gujranwala, Gujarat, Gwadar . Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana Sahib, Narowal, Peshawar, Quetta, Rahimyar Khan, Rawalpindi , Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.
Now, the valuation tables of all these cities will be revised from 13% to 15%, while nine more cities/towns have been added to the list of valuation tables with effect from August 1, 2023.
The Board of Revenue, Punjab, in a letter sent to all Deputy Commissioners/District Collectors last month, had stated that a meeting was held under the chairmanship of a senior member of the Board of Revenue, Punjab, regarding the updated progress in the preparation of DC valuation tables. Consultation with FBR representatives.
During the meeting, the senior member asked to issue instructions to all district collectors of Punjab regarding the preparation of assessment table for the financial year 2023-24.
In order to rationalize and harmonize the DC Valuation Tables and FBR Valuation Tables, the District Collectors should involve the representative of FBR, as the committee members had already notified in the Punjab Stamp (Valuation Table in respect of Immovable Property). Rules, 1999.
It is advised that the timelines for completion of evaluation tables already circulated should be adhered to.
It is further advised that the name of the housing society/scheme and the khasra number on which the housing society/scheme has been developed should be mentioned in the valuation table.
While notifying the rates, the brochure price advertised by the housing societies/schemes may also be considered. The order states that this work should be given ‘top priority’.
When contacted, a senior FBR official told The News that work on updating the assessment tables and adding more cities and towns has already been completed. Now the higher authorities of the FBR were scrutinizing the work done by the regional formations in consultation with the respective provincial authorities.
It has been decided that, with effect from August 1, 2023, the evaluation tables will be increased by an average of 15% in the upcoming exercise.
“We want to make updation of assessment tables a permanent annual feature,” the official said, adding that there is still a difference between the assessment rates notified by the FBR and the prevailing market rates.
Revision of valuation tables of properties is a condition attached to the World Bank’s $400 million loan titled ‘Pakistan Revenues (PRR) and RISE-II programme’.
The revised assessment rates will help in collecting more tax from immovable property. However, the notified rates of FBR are still lower than the prevailing fair market value.
Originally published in news