Islamabad: The Federal Board of Revenue (FBR) on Thursday sent its summary of the revised valuation rates for immovable properties in 20 major cities – proposed on June 23; following the government’s budget announcement of June 11 which provided some indication of an expected increase – to the Ministry of Law for approval, a news source reported.
Through the implementation of the new valuation rates, the FBR aims to bring property rates at par with their fair market values and increase the government’s tax revenue attained from the real estate sector.
The board had initially planned to enforce the new rates starting July 1 – after making consultations with the stakeholders concerned. An FBR spokesperson later announced, however, that the rates notified earlier in February 2019 would stand valid until further notice.
Following the law ministry’s approval, the new FBR valuation rates will come into effect in the following cities:
Furthermore, the FBR has also clarified that the individuals making purchases of goods amounting to over PKR 50,000 are now bound by law to share copies of their CNICs with the businesses registered for sales tax collection purposes.
In contrast, individuals making purchases from businesses not registered with the FBR are not required to follow this requirement.
The purpose of this new rule, as has been reported, is to document the economy.