Islamabad: Big news for those who buy their own house or plot, FBR has increased the prices.
According to the details, the Federal Board of Revenue (FBR) has increased the real estate prices by 75% in fifty-six cities.
FBR hiked property prices by up to 80% in 56 cities and the new rates will be applicable from November 1.
What did Chairman FBR Rashid Muhammad Langriyal say?
Chairman FBR Rashid Mohammad Langriyal said that the purpose of raising property Rates is to collect revenue and shift investment to more productive sectors of the economy.
According to the media, 12 new cities have been covered, including Bannu, Chiniot, Kotli Sattian, and Ghoda Gali.
The government has already implemented several taxes on the real estate sector in the current budget, having previously adjusted property prices four times in 2018, 2019, 2021, and 2022.
The FBR has started publishing updated property values ​​on its website and the list of nearly 2 dozen cities had been updated by the time of reporting this news.
In many other countries, the tax is determined based on the value of the transaction.
He said that the FBR collects withholding tax under Sections 236C, 236K, and 7E of the Income Tax Ordinance, and a 5% Federal Excise Duty was also imposed on the purchase and sale of property in the last budget.
FBR has been working since 2016 to determine property’s fair market value in major urban centers.
Whereas under Section 27(a) of the Stamp Act, 1899, the valuation list in the provinces is generally issued by the District Collector.
“He Said We have increased the prices marginally, which is much less than the market expectations,”.
