WB loan condition: FBR decides to hike valuation rates of properties

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 per cent on average in different urban centres of the country.

It has also been decided that the number of cities would be increased from 42 to 51 in the ongoing exercise, under which the hiked property valuation rates of the FBR would 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 in the range of 13 to 15 per cent, while new nine more cities/ towns would be added to the valuation tables’ list with effect from August 1, 2023.

The 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 for issuing instructions to all district collectors in Punjab regarding preparation of valuation tables for FY 2023-24.

In order 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 member 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 completion of valuation tables already circulated should be followed. It is further advised that the name of the housing society/ scheme, along with 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 working for updating the valuation tables as well as adding more cities and towns had already been completed and 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 an average, 15 per cent valuation tables would be jacked up in the upcoming exercise with effect from August 1, 2023.

“We want to make updating of valuation tables a permanent annual feature,” said the official and added that there was still a gap between the valuation rates, notified by the FBR and existing market rates.

Under the World Bank loan of $400 million, titled ‘Pakistan Raises Revenues (PRR) and RISE-II programme’, the revision of valuation tables of properties in one condition is attached with it. The revised valuation rates will help collect more taxes from immovable property. However, the FBR’s notified rates are still lower than the existing fair market value.