The Federal Board of Revenue (FBR) has introduced new valuations for immovable properties in Islamabad, effective from August 01, 2022.
The updated valuation, outlined in the SRO 1180(I)/2022 issued on July 27, 2022, brings modifications to the property assessment framework for the capital city.
According to the notification, the revised valuation applies to both residential and commercial properties, with the values specified for superstructures based on their age. The FBR has categorized the values as follows:
(a) Residential and Commercial Superstructure Values:
• Rs. 2000 per square foot for superstructures up to five years old.
• Rs. 1000 per square foot for superstructures older than five years.
(b) Resolution of Conflicting Rates:
• In the event of conflicting rates for a specific area between TABLE I and TABLE II, the higher of the two values shall be applicable.
This move comes as part of the FBR’s ongoing efforts to align property valuations with market realities and ensure a fair and transparent assessment process. The differentiation based on the age of the superstructure reflects a nuanced approach, acknowledging that newer constructions may hold a higher market value.
It’s noteworthy that the FBR had previously made adjustments to property valuation tables earlier this year. The SRO 428(I)/2022, dated March 15, 2022, introduced amendments to the SRO 342(I)/2022, dated March 02, 2022. This revision included the withdrawal of property valuation tables for DHA Phase 1 – 5 and DHA Valley concerning both residential and commercial plots.
The periodic adjustments to property valuations reflect the government’s commitment to maintaining an accurate and up-to-date assessment of real estate values. The valuation process is crucial for various fiscal aspects, including the collection of withholding taxes on property transactions. By ensuring that valuations are reflective of current market dynamics, the FBR aims to enhance transparency and equity in the real estate sector.
Property owners, buyers, and other stakeholders in Islamabad’s real estate market are encouraged to take note of these revised valuations. The distinction between older and newer superstructures provides a clear framework for assessment, offering a standardized approach that considers the dynamic nature of the real estate market.
As the revised valuations come into effect on August 01, 2022, it is anticipated that this move will influence property transactions and related tax implications in Islamabad. The FBR’s commitment to periodic reviews and adjustments reflects a proactive stance in adapting to the evolving economic landscape, fostering a real estate environment that is both fair and conducive to sustainable growth.
