Islamabad: The Federal Board of Revenue (FBR) has updated its property valuation rates, which will see an increase of up to 80% across 56 cities starting November 1. This revision incorporates 12 new cities and adjusts rates based on a variety of factors including property type and location.

According to Zameen.Com, the FBR’s move to revise the valuation rates affecting cities like Bannu, Chiniot, Kotli Sattian, and Ghora Gali marks a continued effort to align declared property values more closely with their actual market values. FBR Chairman Rashid Mahmood Langrial described the adjustments as “moderate” and a necessary step towards more accurate tax assessments.

This revision not only aims to improve the accuracy of tax collections but also aligns with the FBR’s ongoing strategy to broaden the tax base in the real estate sector, which has been less than forthcoming about the true values of transactions. The new valuation rates will impact the calculation of federal taxes, including capital gains tax and withholding tax.

The FBR has been actively adjusting property valuations since 2016, with prior revisions in 2018, 2019, 2021, and 2022. These efforts are part of a broader initiative to extract fair tax contributions from the real estate sector, which holds significant untapped potential for revenue generation.