FBR raises property valuation in 56 cities

The Federal Board of Revenue (FBR) has raised property valuation rates for immovable properties in 56 cities, ARY News reported on Wednesday.

According to details, the FBR jacked up the property valuation rates by 75% of the actual market rates starting November 1, 2024.

This decision aims to enhance revenue collection and reduce the undervaluation of properties. The updated rates reflect the FBR’s commitment to align the property values with their real market worth, expanding the number of cities affected from 42 to 56, in line with World Bank stipulations.

The new valuation rates, include separate categories for commercial, industrial, and residential properties.

The detailed notification of these revised rates is expected to be made public soon, following the approval from the FBR chairman.

The changes will potentially raise property values by up to 75% in some cases, as part of a broader effort to realign with current market conditions and boost fiscal revenues.

Earlier, the Federal Board of Revenue (FBR) notified a 4 per cent increase in sales tax on tractors.

According to the notification issued by the FBR, the sales tax on locally manufactured tractors has been raised from 10% to 14%, and the same increase applies to imported tractors.

The Federal Board of Revenue (FBR) officials stated that certain sales tax exemptions for tractors have been reduced. While the sales tax has been adjusted from 18pc to 14pc, the FBR officials clarified that this increase would not make tractors more expensive.

They further mentioned that this reduction in tax rate would simplify the sales tax refund process.