FBR issues new valuation table for 28 areas in Rawalpindi

ISLAMABAD – The Federal Board of Revenue (FBR) has introduced a fresh valuation table for immovable properties in Rawalpindi, aiming to determine income tax liabilities associated with property transactions.

The new valuation, applicable to 28 areas within the city, including prominent locales such as Satellite Town, Chandni Chowk, College Road, Talagang Road, Wah Cantt, West Ridge, Murree Road, DHA, and Bahria Town, reflects a 20 percent increase for income withholding tax purposes.

This significant development is outlined in the recently issued SRO 126(I)/2019, specifically tailored for Rawalpindi. The revised valuations supersede the previous notification, SRO 671(I)/2016, issued on August 02, 2016.

The decision to augment property valuations by 20 percent is part of the FBR’s broader strategy to align property values with market rates. The existing District Collector (DC) rates, which are below the rates specified by the FBR and the open market, have prompted this measure. By setting valuations closer to open market levels, the FBR aims to curb discrepancies, enhance transparency, and promote fair taxation.

The primary objective behind the valuation adjustment is to address the prevalent gap between DC rates and market rates, a gap that can potentially facilitate the circulation of black money. The new valuations aim to minimize this disparity, bringing the assessed property values more in line with market realities.

The FBR’s move is in line with its broader mission to reduce tax evasion, broaden the tax base, and promote financial transparency. By establishing more accurate property valuations, the FBR seeks to create a tax environment that discourages illicit financial activities and encourages compliance.

This initiative is expected to have a direct impact on property transactions in Rawalpindi, influencing the calculation of income withholding tax and bringing a more realistic reflection of property values. While the immediate effects might be felt by taxpayers, the long-term goal is to establish a fair and transparent property valuation system that contributes to the overall economic health and fiscal integrity of the region.

Market participants, real estate professionals, and taxpayers are urged to stay abreast of the new valuations and ensure compliance with the updated rates. The FBR’s ongoing efforts to align property valuations with market rates underscore the government’s commitment to building a robust and equitable taxation system that fosters economic growth and financial accountability.