FBR announces massive rise in Karachi properties valuation

KARACHI: The Federal Board of Revenue (FBR) has announced a massive increase in the valuation of immovable properties located in Karachi for the purpose of collecting withholding tax.

Read more: FBR issues fresh, revised valuation of immovable properties

The FBR revised the valuation of immovable properties after a span of two years. A day ago, the revenue board issued fresh and revised valuation tables for major cities in the country.

Image: FBR

The significant rise in the valuation can be gauged through the comparison of valuation of latest and previous tables. The valuation of a residential open plot in Defence, Karachi has been increased to Rs73,125/square yard from the previous value of Rs42,000/square yard.

Similarly, the valuation of residential built up property has been increased to Rs81,000/square yard from Rs48,000 for the same area.

Previously, the apex tax body had revised the valuation of immovable properties in February 2019 and since then it issued new valuations on December 1, 2021.

Image: FBR

The FBR valuation of immovable properties is the indicative price for the collection of withholding tax at the time of sale and purchase.

It collects withholding tax under Section 236C and 236K on sale and purchase of immovable property. The provincial registrar is liable to collect the withholding tax on behalf of the revenue board.

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Sources in the FBR said by increasing the valuation of immovable properties the prices would be near to the fair market value and would also reduce the presence of black money in the real estate business.

Besides, the upward revision in the property valuation will also help the FBR generate sizeable revenue, as well.