The Federal Board of Revenue (FBR) has significantly increased property valuation rates for immovable properties across Pakistan. As reported on Wednesday, the property valuation rates have been adjusted to 75% of actual market rates. This change will take effect from November 1, 2024.
This decision by the FBR aims to boost revenue collection and reduce the undervaluation of properties. The updated rates reflect the FBR’s commitment to align property values more closely with their real market worth. The expansion includes an increase from 42 to 56 cities, in accordance with World Bank requirements, which emphasizes fiscal transparency and accurate property valuation.
The revised rates categorize properties into separate segments: commercial, industrial, and residential. This classification aims to capture diverse property market values more precisely, ensuring that valuation aligns with each property’s type and use.
Detailed Notification Expected
The FBR has announced that a detailed notification of these revised rates will be made public soon. This publication will follow the approval of the FBR chairman, who will formalize the increased rates. The new valuation is likely to raise property values by as much as 75% in certain areas, reflecting current market conditions and supporting the FBR’s revenue goals.
FBR Increases Sales Tax on Tractors
In a separate development, the Federal Board of Revenue (FBR) has also raised the sales tax on tractors. According to an official notification, the sales tax on locally manufactured and imported tractors has been increased from 10% to 14%.
Exemptions Reduced
The FBR officials highlighted that some previous sales tax exemptions for tractors have been reduced. The sales tax, initially at 18%, was adjusted down to 14%, with officials clarifying that this adjustment should not lead to an increase in tractor prices.
Refund Process Simplified
Additionally, FBR representatives explained that the reduced tax rate on tractors will simplify the sales tax refund process. By streamlining this process, the FBR aims to improve efficiency in tax administration, reducing the procedural burden on manufacturers and importers alike.
Both initiatives—the property valuation rate increase and tractor sales tax adjustment—are part of the FBR’s ongoing efforts to enhance revenue and ensure accurate tax compliance across sectors.
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