The Federal Board of Revenue (FBR) has revised the property valuation rates of immovable properties. FBR has reduced the property rates in 40 cities from March 1, 2022, by bringing down the irrational high market values fixed in December 2021.
The FBR has issued 40 notifications to downward revised Property Valuation Rates of Immovable Properties tables here on Thursday.
Previously, in December 2021, to revise the rates of fair market value of immovable properties, the FBR had increased the values of residential and commercial immovable properties located in 40 major cities across the country.
The values of about all residential and commercial immovable properties of Pakistan were increased in an attempt to bring them near to fair market values.
The FBR suspended the valuation notifications till Feb 28 and issued downward revised values of immovable properties from March 1, 2022, in negotiation with stakeholders including developers and builders.
Earlier, when the FBR had notified valuation rates of properties on December 1, 2021, then the real estate sector demanded of the government to revise downward valuation rates. Then the Real Estate Consultants Association (RECA) representatives held meetings with Minister for Finance Shaukat Tarin and convinced him for revising downward the valuation rates. The FBR’s Chief Commissioners of respective cities were assigned for holding consultations and then the rates were revised downward.
The valuation tables have been revised to collect more taxes from the property sector. The FBR has reduced the market values of residential and commercial immovable properties located in Abbottabad; Attock; Bahawalnagar; Bahawalpur; Chakwal; Dera Ismail Khan; DG Khan; Faisalabad; Ghotki; Gujranwala; Gujrat; Gwadar; Hafizabad; Hyderabad; Islamabad; Jhang; Jhelum; Karachi; Kasur; Khushab; Lahore; Larkana; Lasbala; Mandibahauddin; Mansehra; Mardan; Mirpurkhaas; Multan; Nankna; Narowal; Peshawar; Quetta; Rahim Yar Khan; Rawalpindi; Sahiwal; Sargodha; Sheikhupura; Sialkot; Sukkur, and Toba Tek Singh.
In Islamabad, the valuation rate for E-7 was revised downward to Rs150,000 for any size against earlier rate of Rs250,000 per square yard, F-6 rate was fixed at Rs140,000 for any size from earlier notified rate of Rs200,000 per square yard, F-7 rate was fixed at Rs140,000 for any size against earlier notified rate of Rs350,000 per square yard, E-11/3-4 was fixed at Rs70,000 for any size against Rs110,000 per square yard, B-17 (without possession) any size Rs12,000 against earlier notified rate of Rs55,000 per square yard, D-12 Rs100,000 for any size against Rs100,000 per square yard, F-8 rate was fixed at Rs130,000 for any size against Rs200,000 per square yard. The rate of Bani Gala was fixed at Rs28,000 for any size of plot against earlier notified rate of Rs36,363 per square yard.
In Islamabad, the value of residential and commercial superstructure shall be – (a) Rs2,000 per square foot, if the superstructure is up to five years old, and (b) Rs1,000 per square foot, if the superstructure is more than five years old.
In case of Karachi, the FBR has divided all areas into different categories and explained that values in the Tables are in rupees; (ii) Value is per square yard of the covered area of ground floor plus covered area for the additional floors; (iii) Commercial property built up value is per square yard of the covered area of the ground floor plus covered area of the additional floors, if any; (iv) Built up industrial property value is per square yard of the entire plot area plus covered area of the plot per square foot; (v) Value in respect of a residential building consisting of more than one story shall be increased by 25 percent for each additional story i.e. value of each story other than ground floor shall be calculated @25% of the value of the ground floor; (vi) A property which does not appear to fall in any of the categories shown in the Appendix below shall be deemed to fall in the adjacent lowest category of the Appendix; (vii) Whether the land has been granted for more than one purpose viz. residential, commercial and industrial, the valuation in such a case shall be the mean/average prescribed rate; (viii) A flat means the covered residential tenement having separate property unit number/sub-property unit number; (ix) In residential, multi-storey building, additional storey shall be charged, if it consists of bed room and bath room; (x)The rates for basements of built in commercial property in categories I,II,III, and IV shall be Rs13,500 per square yard; and (xi) High Rises at Serial Number No 44 of Appendix means a building with storeys above ground plus five. (xii) The value of residential built up property (including basement and first floor) is allowed to be reduced according to a criteria as up to five years age of structure of building no reduction is allowed, from five to 10 years, five percent reduction will be allowed, from 10 to 15 years, 7.5 percent reduction is allowed, 15 to 20 years, 10 percent reduction is allowed, and more than 20 years the rate of open plot will be applied.
In Rawalpindi, the valuation of property in Satellite Town is fixed at Rs2.4 million in residential area and Rs5 million in commercial area, DHA-1 Rs740,000 per marla and Rs4.4 million for commercial area, DHA Valley Rs125,000 per marla in residential area and Rs575,000 per marla in commercial area, Bank Road Murree Rs2.9 million for residential area and Rs5 million for commercial area, Lalazar Wah Rs1.3 million for residential area and Rs2.1 million for commercial area, Aslam Market Wah Rs1.6 million for residential area and Rs2.3 million for commercial area, Mumtaz City Rs849,600 per marla for residential area, and Rs7.9 million for commercial area.
In Gwadar city, the valuation of property has been fixed at Rs17.7 million per acre at Airport Road land, Coastal Highway Washendor Rs4.9 million per acres, and SHS Commercial Rs16.318 million per acres.
Through new notifications issued on Thursday, the values of almost all residential and commercial immovable properties of Pakistan were decreased.