Islamabad: The government is mulling an upward revision in the property valuation rates and increasing the valuations fixed previously by the Federal Board of Revenue (FBR) for the Islamabad Capital Territory (ICT) in the next budget, according to news published on June 03.
The revision is aimed at getting the local real estate sector to contribute more in terms of tax revenue. It is highlighted that presently 44% or PKR 1.4 trillion worth of land valuation is not being utilized.
According to the sources, the low-level district administration officials who are involved in unrecorded, informal property transactions will also be held accountable. The task of specifying the new property valuation rates in ICT might be given to FBR from July.
The current valuation table in ICT has three variations:
• The valuation rate of the FBR
• The valuation rate of the district admin
• The valuation rate which is related to the actual market rate
Presently, FBR is collecting withholding tax on transactions and capital gains tax on profits in major metropolises of the country. It was also highlighted that the present valuation rates in Islamabad reduced the total value of 106 revenue estates categorized as ‘rural’, and thus have cost the national exchequer million in tax revenue.