Updated property rates are expected to impact buyers, sellers and investors.
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Web Desk
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The Federal Board of Revenue (FBR) has issued new official property valuation rates for Islamabad, revising the values of both residential and commercial properties in the federal capital.
According to a notification released by the FBR, updated valuation rates for immovable properties have been enforced, showing an increase ranging from 15 percent to as high as 75 percent compared to previous rates. The revised rates will now be used to determine the market value of properties for taxation purposes.
The notification stated that under the new rates, capital gains tax and withholding tax on property transactions will be calculated based on the updated valuation. This move is expected to increase tax collection from the real estate sector and bring property valuations closer to market prices.
As per the revised schedule, the valuation rate for residential constructed properties up to five years old has been set at Rs3,000 per square foot. Meanwhile, residential properties that are more than five years old will be valued at Rs1,500 per square foot.
The FBR further clarified that with the issuance of the new Statutory Regulatory Order (SRO), all previous valuation rates have been cancelled and will no longer apply.
The updated property rates are expected to impact buyers, sellers and investors in Islamabad’s real estate market, as higher official valuations may lead to increased tax liabilities on property transactions.
