By Web Desk 
Pakistanās Federal Board of Revenue (FBR) has announced an upward revision of property valuations across 56 cities, aiming to more closely align official values with current market rates. This adjustment is expected to impact both residential and commercial properties, resulting in higher property tax rates that more accurately reflect real estate values. The change targets discrepancies between market prices and official valuations, an issue that has historically contributed to reduced tax revenue. The adjustment is seen as part of a broader FBR initiative to improve tax compliance and boost revenue from real estate transactions.
This move by FBR could affect property owners in urban centers like Karachi, Lahore, and Islamabad, where real estate has been a preferred investment. With higher valuations, property taxes will increase, making it essential for owners to reassess their tax liabilities. Analysts suggest that the updated valuations will encourage more transparent real estate dealings, reducing the prevalence of undervaluing property sales to avoid higher taxes. For those involved in buying, selling, or investing in real estate, the new valuations bring additional tax implications and could prompt a re-evaluation of property investments.
The revised valuations are expected to contribute to FBRās efforts to close the tax gap and create a fairer tax system across the real estate sector. By bringing valuations closer to actual market prices, FBR aims to create a more accountable property tax system that will generate increased revenue for development projects and infrastructure improvements. Real estate professionals are closely watching the impact this policy shift will have on market behavior, as it represents a significant change in how property taxes are assessed and collected across Pakistan.