The Federal Board of Revenue (FBR) has made several adjustments to property valuations over the past few years. These changes have aimed to bring the valuations closer to the actual market prices in order to increase transparency in real estate transactions and ensure fair taxation. Below is a timeline of significant property valuation changes introduced by the FBR in recent years:
2018 Property Valuation Changes
In 2018, the FBR made its first significant attempt to revise property valuations after a long period of stagnant rates. This adjustment was aimed at aligning the official property values more closely with the actual market rates. Before 2018, there was a large discrepancy between the FBR’s property values and the market values, which allowed for underreporting in transactions and reduced tax revenue.
2019 Property Valuation Revisions
Following the 2018 changes, the FBR introduced another round of revisions in 2019. This adjustment raised property valuations further, particularly in major cities like Karachi, Lahore, Islamabad, and Rawalpindi. These revisions helped improve transparency, but the gap between FBR-assessed values and actual market prices remained, particularly in some high-demand areas.
2021 Property Valuation Adjustment
In 2021, the FBR made another significant update to property valuations across Pakistan. The 2021 revision brought the valuations closer to 70-75% of the actual market value, continuing the government’s effort to align property tax rates with real market conditions. This change impacted not only residential properties but also commercial and industrial sectors.
2022 Freezing of Property Valuations
In 2022, the FBR took a brief pause from further revisions, freezing property valuations. During this period, property owners and real estate investors saw no new increases in official valuations, providing temporary relief. However, the government signaled that future adjustments would follow, particularly to keep pace with rising property prices.
2024 Upcoming Valuation Increase
Now, in October 2024, the FBR is set to implement its most significant increase yet, raising property values by up to 75% across 42 major cities. This adjustment will bring property valuations closer to 80-90% of the actual market value. The upcoming changes are expected to have a major impact on property taxes and will influence both the real estate market and government revenue collection moving forward.
Summary:
| Year | Key Changes Introduced | Impact on Property Valuation |
|---|---|---|
| 2018 | - First major adjustment after a long period of stagnant rates. - Aimed at reducing the gap between FBR and market values. | Property values increased moderately, though still below market rates. |
| 2019 | - Second revision following the 2018 update. - Focus on key cities like Karachi, Lahore, Islamabad, and Rawalpindi. | Further increase in property values, with a focus on high-demand urban areas. |
| 2021 | - Significant adjustment bringing values closer to market rates. - Applied to residential, commercial, and industrial properties. | Property values increased to around 70-75% of market value. |
| 2022 | - FBR froze property valuations. - No new increases during this year. | No change in property values. |
| 2024 | - Major upcoming revision on October 11, 2024. - Expected increase of up to 75% in 42 major cities. - New values projected to reach 80-90% of market value. | Property values will rise significantly, particularly affecting taxes and real estate transactions. |