Karachi: Federal Board of Revenue’s (FBR) property tax revenue has increased by 58% during the first nine months of the current fiscal year, a news source reported. The growth has been attributed primarily to the increase in property valuations.
The property tax collection between July 2018 and March 2019 stood at PKR 7.6 billion, while the collection for same period the previous year was PKR 4.61 billion.
FBR valuations had been raised in February 2019 to raise the collected amount of withholding tax. FBR had also increased the monitoring of property tax collection by the provinces.
According to experts, the formation of Directorate of Immovable Property also contributed to the higher tax collection. The fear that FBR may be buy off their properties forced people to declare the value of their property near its actual value.
Another possible factor for the growth is the increase in property transactions since last year.