ISLAMABAD: Under the World Bank's loan conditions, the Federal Board of Revenue (FBR) has decided to jack up valuation rates of properties in the range of 13% to 15% on average in different urban centres of the country.
It has also been decided that the number of cities will be increased from 42 to 51 in the ongoing exercise, under which the hiked property valuation rates of the FBR will be notified.
"We are working on jacking up valuation rates of properties with effect from August 1, 2023, in consultation with the provincial authorities," top official sources confirmed to The News on Monday.
Currently, the FBR fixed property valuation rates are applicable in more than 40 cities/ towns of the country, 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.
Now, the valuation tables of all these cities would be revised upward by 13% to 15%, while nine more cities/towns have been added to the valuation tables' list with effect from August 1, 2023.
Punjab's Board of Revenue, in its last month communication to all deputy commissioners/district collectors, stated that a meeting was held under the chairmanship of a senior member of the Board of Revenue, Punjab, regarding the updated progress of preparation of DC Valuation Tables in the consultation with the FBR representatives.
During the meeting, the senior member asked to issue instructions to all Punjab district collectors regarding preparing valuation tables for FY 2023-24.
To rationalise and bring harmony in the DC valuation tables and the FBR valuation tables, the district collectors should co-opt the representative of the FBR, as members of the committee had already notified in the Punjab Stamp (Valuation Tables in respect of Immovable Property) Rules, 1999.
It is advised that the timelines for completing valuation tables already circulated should be followed.
It is further advised that the name of the housing society/scheme and the Khasra numbers on which the housing society/scheme is developed should be mentioned in the valuation tables.
While notifying the rates, the brochure value advertised by the housing societies/ schemes may also be considered. This task must be assigned 'Top Priority', said the order.
When contacted, one senior FBR official told The News that working on updating the valuation tables and adding more cities and towns had already been completed. Now the FBR high-ups were scrutinising the work done by the field formations with the consultation of the respective provincial authorities.
It has been decided that, on average, 15% valuation tables will be jacked up in the upcoming exercise, effective August 1, 2023.
"We want to make the updating of valuation tables a permanent annual feature," said the official, adding that there was still a gap between the valuation rates notified by the FBR and existing market rates.
The revision of valuation tables of properties is one condition attached to the World Bank loan of $400 million, titled 'Pakistan Raises Revenues (PRR) and RISE-II programme'.
The revised valuation rates will help collect more taxes from immovable property. However, the FBR's notified rates are still lower than the current fair market value.