ISLAMABAD: The government has decided to increase the property valuation rates by around 21 per cent.
The Federal Board of Revenue (FBR) decided to raise the valuation rates by 20 to 21 per cent in major cities across Pakistan.
The move is aimed at removing the lacuna that is allowing black money into the economy.
The second phase of aligning property valuation rates in line with market rates was due since July 2017 and the previous PML-N administration had twice delayed the increase, reports an English daily.
The move is expected to raise an additional Rs5 billion in tax revenues in the last five months (Jan-Jun) of the current financial year 2018-19.
The FBR notified the revised property valuation rates and more areas were added to the existing cities targeted at widening the coverage.
The Federal Board of Revenue (FBR) spokesman, Dr Hamid Ateeq Sarwar said the rates have been increased by 20% on average and overall property valuation rates had been raised between 15% to 25%.
Sarwar said that after the latest revision, property valuation rates were closer to 60% of the actual market values.
The final phase of property valuation will be carried out in July or September. After the final phase, the property valuation rate will be 80 per cent of the market rate.
However, the tax regulator hasn’t added more cities to the list and kept it unchanged at twenty-one and these rates are effective starting 1st February.
The move is squarely focused on collecting federal taxes on the sale and purchase of properties.