FBR increases values of immovable properties in 20 cities
The value of sectors I-9, I-10 of Islamabad has been increased up to Rs5 million per kanal.
KARACHI (Dunya News) – The Federal Board of Revenue (FBR) has revised the values for taxation of immovable properties in 20 cities of Pakistan including the federal and provincial capitals and Gwadar to bring them in line with actual market rates.
The FBR issued a separate notification for each city and maintained that the value of immoveable properties on the basis of different categories has been revised with effect from July 24.
This is for a second time in five months that the tax authorities have revised the valuation rates for residential, commercial, industrial and flats categories.
The major 20 cities include Abbottabad, Bahawalpur, Faisalabad, Gujrat, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Lahore, Mardan, Multan, Peshawar, Quetta, Rawalpindi, Sahiwal, Sargodha, Gujranwala, Sukkur, and Gwadar.
According to the notification, the rate of properties built less than five years ago has been fixed at Rs1,500 per sq. ft whereas the value of building constructed five years ago has been set at Rs1,000 per sq. ft.
The value of sectors I-9, I-10 of the industrial zone of Islamabad has been increased up to Rs5 million per kanal.
The rate of farm houses in Industrial Triangle Kahuta and Tarlai Islamabad has been set at Rs4 million per kanal.
In the sale and purchase of residential and commercial plots, capital gains tax has been incremented by 40 to 45 percent.
Moreover, five percent tax has been imposed on the profit of Rs5 million while selling properties, 10 percent on the profit of Rs10 million, 15 percent on the profit of Rs15 million and 20 percent on the profit gained on the amount more than Rs15 million.
Importantly, the FBR has removed prohibition on the non-filers from buying property with a value of more than Rs5 million; however, besides paying 1 percent withholding tax, the buyer has to pay 5 percent of the rate of the property as fine. In case, if a property is sold after five years, no tax shall be imposed on it.
