Islamabad: The Federal Board of Revenue (FBR) has introduced revised property valuation rates in six major cities, opting for targeted adjustments in selected localities instead of a blanket revaluation. The move is aimed at easing transaction pressures while gradually aligning official values with prevailing market rates.
The updated valuation tables will be used to calculate federal taxes, including capital gains tax and withholding tax. In Pakistan, these taxes are typically assessed on notified (collector) values, which often remain below actual market transaction prices.
The revisions cover Islamabad, Faisalabad, Gujranwala, Multan, Bahawalpur and Sialkot. Officials said the exercise focuses on high-value housing schemes and emerging urban clusters where earlier valuations required correction, while maintaining the broader framework introduced in previous years.
In Islamabad, the revised valuation framework has gone through multiple iterations. An earlier notification issued in late 2025 was suspended following concerns raised by the business community. Subsequent revisions in early 2026 reduced valuation rates, and a fresh notification issued on April 16 introduced further cuts of 10–35% in selected sectors. This latest update supersedes earlier notifications and effectively resets valuation benchmarks in the capital.
In Multan and Faisalabad, the FBR has amended specific entries within existing valuation tables rather than replacing them entirely. Officials described the changes as corrective updates targeting identified localities and property categories, without altering the overall methodology.
Similarly, in Bahawalpur, revisions have been concentrated in major housing schemes, including DHA and Askari developments. In Gujranwala, adjustments have been made in defence and high-end residential schemes, while in Sialkot, updates apply to selected residential plots and built-up properties.
Tax authorities say the selective approach is designed to strike a balance between improving documentation of the real estate sector and avoiding sudden shocks to the market. By narrowing the gap between notified and market values in phases, the FBR aims to enhance transparency while keeping transactions viable for both buyers and sellers.
The latest revisions continue the government’s broader effort to rationalise property taxation, though officials indicate that a complete shift to market-based valuation remains a longer-term objective.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
