ISLAMABAD: The government has decided in principle to increase property valuation rates for tax purposes beginning next month to bring them closer to market value.
A senior tax official told that the new valuation tables will go into effect for taxation purposes in September.
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Value increases have already been opposed by real estate stakeholders. Since 2016, the Federal Board of Revenue (FBR) is responsible for determining the property’s fair market value.
Section 27-A of the Stamp Act of 1899 requires the collector of a district to notify the provinces of the valuation table.
According to the official, the revision of property valuations in more than fifty cities will be concluded this month. “We will attempt to implement it by September 1,” the official continued.
Meanwhile, FBR chairman Zubair Tiwana assured a Federation of Realtors Pakistan delegation that all possible facilitation would be provided. Under the Stand-by Arrangement with the IMF, however, any new tax exemption, concession, or preferential tax treatment may not be possible at this time.