ISLAMABAD: The Federal Board of Revenue (FBR) has hiked property valuations by 20 per cent to 100 per cent for the purpose of tax collection on commercial and residential property sales in Islamabad and 18 other large cities.
Comments and recommendations from all the concerned stakeholders regarding the proposed rates have been sought till June 30, 2019, as the new rates will come into effect from July 1.
According to the proposed notification issued by the FBR, taxes will be increased on properties in Islamabad, Lahore, Faisalabad, Peshawar, Multan, Mardan, Jhang, Gujrat, Sukkur, Hyderabad, Sialkot, Sargodha, Sahiwal, Jhelum, and other cities.
The notification has fixed Rs1,500 as the per square foot valuation for constructions under five years old and Rs1,000 for properties over five years old. However, separate valuations have been set for each sector, most of which are 20 to 100 per cent higher than the last valuation.
According to the proposed rates, the value of the property in Sector D-12 has been raised from Rs38,760 per square yard to Rs68,000 per square yard.
The previous rate of Rs68,580 per square yard in Sector E-7 has been increased to Rs148,000 – the highest rate in the city – while for Sector E-11 the rate has gone from Rs31,200 per square yard to Rs64,000.
For Sector E-12, the rate has jumped from Rs18,371 to Rs37,600; for Sector F-6, the rate has escalated from Rs58,260 to Rs136,000; for Sector F-8, the rate has gone from Rs58,260 to Rs120,000; for Sector F-10, the costs have increased from Rs50,460 to Rs104,000; for Sector F-11, Rs88,000 is the new rate, up from Rs50,460.
The cost for Sector G-6 have been increased from Rs49,620 to Rs88,000; for Sector G-7, the cost for each square yard has been increased from Rs45,720 to Rs88,000; for Sector G-8, the cost of each square yard has been increased from Rs45,720 to Rs88,000 per square yard.
For sector G-9, the cost has been increased from Rs45, 720 to 84,000; for Sector I-8, it has increased from Rs45,720 to Rs96,000, and for sector I-9 it has increased from Rs19,200 to Rs64,000.
Significant increases were also made for other sectors. However, advance income tax will be collected in accordance with DC rates from residential areas in Islamabad’s, B-17, C-15, C-16, D-13, D-17, G-15, G-16, F-14, F-15, F-16, and F-17.
The value of the flats has also been increased, with a Rs2,000 per square yard valuation on flats in buildings less than five years old, and Rs1,500 per square yard for older buildings.