In accordance with the loan conditions set by the World Bank, the Federal Board of Revenue (FBR) has made the decision to increase property valuation rates in various urban centers across the country. This increase will range from 13 per cent to 15 per cent on average.
As part of this ongoing exercise, the FBR has also expanded the number of cities covered from 42 to 51. The revised property valuation rates will be officially announced for these cities.
High-ranking sources within the FBR have confirmed that consultations with provincial authorities are underway to determine the adjusted property valuation rates, which are scheduled to take effect from August 1, 2023.
Presently, the FBR’s property valuation rates are applicable in over 40 cities and towns, including Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, Dera Ghazi Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana Sahib, Narowal, Peshawar, Quetta, Rahimyar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur, and Toba Tek Singh.
Under the revised valuation tables, all of these cities will experience an increase of 13 per cent to 15 per cent. Additionally, starting from August 1, 2023, nine more cities and towns will be added to the list of covered areas.
The Punjab Board of Revenue recently communicated to all deputy commissioners and district collectors, informing them of a meeting held under the chairmanship of a senior member of the Board of Revenue, Punjab. The purpose of the meeting was to discuss the progress in preparing the DC Valuation Tables in consultation with FBR representatives.
During the meeting, the senior member requested that instructions be issued to all Punjab district collectors regarding the preparation of valuation tables for the fiscal year 2023-24.
To ensure consistency and alignment between the DC valuation tables and the FBR valuation tables, district collectors have been advised to include FBR representatives as members of the committee, as previously stipulated in the Punjab Stamp (Valuation Tables in respect of Immovable Property) Rules of 1999.
It is recommended that the specified timelines for completing the valuation tables be adhered to. Furthermore, the valuation tables should include the name of the housing society or scheme, as well as the Khasra numbers corresponding to the developed housing society or scheme.
In determining the rates, consideration should also be given to the brochure value advertised by the housing societies or schemes. This task should be given top priority, as per the order.
The FBR’s higher authorities are currently reviewing the work conducted by field formations in consultation with the respective provincial authorities.
According to Geo, the upcoming exercise will result in an average increase of 15 per cent in the valuation tables, effective from August 1, 2023. The aim is to establish the updating of valuation tables as an annual practice, as there is still a disparity between the FBR’s notified rates and the current market rates.
The revision of property valuation tables is a condition attached to the $400 million World Bank loan known as the ‘Pakistan Raises Revenues (PRR) and RISE-II program’. The adjusted valuation rates will contribute to increased tax collection from immovable properties. However, it is important to note that the FBR’s notified rates still remain lower than the prevailing fair market value.
