FBR notifies property valuation rates for 16 cities

Published: August 3, 2016
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With effect from July 31, WHT rates will range from 1-4% while CGT rates will range within 5-10%. PHOTO: AFP

With effect from July 31, WHT rates will range from 1-4% while CGT rates will range within 5-10%. PHOTO: AFP

ISLAMABAD: The Federal Board of Revenue [FBR] notified fresh property valuation rates for 16 major cities of the country, Tuesday, providing a new base for the collection of withholding and capital gains tax.

It notified rates for Lahore, Multan, Gujranwala, Faisalabad, Sialkot, Islamabad, Karachi, Hyderabad, Sukkur, Sargodha, Mardan, Abbottabad, Peshawar, Quetta and Gwadar.

Property valuation deal violates 2013 SC ruling

The authorities picked 21 cities for determining fresh, but slightly compromised, property valuation rates during its negotiations with the representatives of the real estate sector. The rates of the remaining five cities are expected to be notified in the next few days.

The rates have been notified with effect from July 31. Withholding tax rates range from 1% to 4% while the CGT rates are in the range of 5% to 10%.

The government and the realty sector representatives had agreed to increase the rates, which are higher than Deputy Collector [DC] rates but far lower than the prevailing market rates. These rates will become the base for collecting withholding taxes from the sellers and purchasers of the properties and the capital gains tax on profits made from these transactions. President Mamnoon Hussain has already promulgated an Ordinance to give effect to the deal, which also includes tax amnesty on past transactions.

The government will not ask the source of income from those who invested in the real estate sector before June 30 this year.

Karachi

The government has divided Karachi into nine categories for the purpose of collecting taxes. The A-1 category including residential plots, commercial, industrial and flats carry the highest values and the lowest valuations have been fixed for category VIII properties.

In Karachi the category A-I’s per square yard residential open plot rate has been fixed at Rs35,000. Constructed residential property rate is Rs40,000 per square yard, commercial open plot at Rs100,000 per square yard, constructed commercial plot Rs67,000 per square yard and flats/apartments rate is Rs5,000 per square foot.

Real estate set to win biggest tax amnesty

The A-I residential areas are civil lines, Clifton quarters excluding Shireen Jinnah colony, Defense House Authority [DHA] from phase one to four, Dhoraji cooperative housing society, Garden East quarters, KDA Officers Housing Society, KDA scheme 1 and 1A, Karachi Administrative Housing Society, Karachi administrative cooperative housing society, Mohammad Ali Cooperative Housing Society, Muslim Colony, Pakistan Employees Cooperative Housing Society, Sindh Muslim Cooperative Society and upper Gizri PS Girzri.

The FBR has notified Gwadar city rates, which are being developed as part of China-Pakistan Economic Corridor [CPEC], in terms of per acre and square yards. The maximum per acre price is set at Rs15 million for airport road land followed by Rs13.8 million for SHS commercial. The maximum per 1,000 square yard rate has been notified at Rs5.4 million for Marine Drive Ankara Junubi and new town housing scheme.

Islamabad

For Islamabad, the FBR has notified the residential areas rates in the range of Rs15,000 per 200 square yards to Rs57,150 per 2,000 square yard plot. For the commercial properties, the new notified rates in Islamabad are in the range of Rs13,000 per square foot to Rs123,750, depending upon the locality. For flats and apartments, new rates have been set up to Rs4,930 per square foot.

The Islamabad Bahria Enclaves rates have been notified in the range of Rs4 million for 272 square yard plot to Rs8 million for 500 square yard plot.

Rawalpindi

The posh residential localities rates in the Rawalpindi city have been notified in the range of Rs225,00 per Marla for Phase VIII Bahria town to Rs600,000 Executive Meadows Phase III of Bahria Town. For most of the Bahria town phases, the per marla rate is up to Rs375,000. The residential city centres, like Satellite town, are priced at Rs1.4 million per marla for taxation.

Lahore

There are vast gaps between the per marla residential prices in Lahore, ranging from Rs168,000 to Rs3.8 million per marla.

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The residential property at Azam cloth market has been priced at Rs3.8 million per marla. The fruit market Badami Bagh per marla rate is Rs2.37 million, circular road residential are rate is Rs2.2 million, Lyton road Rs1.6 million, Hall road Rs1.4 million and Tempal road Rs1.2 million.

The commercial properties per marla prices in Lahore also vary, ranging up to Rs5.6 million in Lyton road. However, yet these prices seem very low than the prevailing market rates.

Peshawar

In Peshawar, the notified prices for residential areas vary from as low as Rs22,000 per marla to Rs1.1 million in Saddar bazaar.

Hyderabad

Hyderabad property valuations have been notified on the pattern of Karachi but the rates are relatively lower than in the country’s largest metropolitan. The notified rates for Sukkur are even lower than Hyderabad rates.

Published in The Express Tribune, August 3rd, 2016.

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Reader Comments (14)

  • Karachi Apartment Seller
    Aug 3, 2016 - 8:48PM

    I bought an apartment in Karachi for 85 lacs, in 2009, and the assessment made for taxation purposes (based on DC rates) was 15 lacs. (more than 5 times lesser than the actual price). I sold the same apartment, in 2013, for PKR 1.35 crores, after completely renovating the same at a cost of 25 lacs. That came to PKR 6,750 per square foot. I am told that the current price for that apartment is 2 crores i.e. a per square foot value of PKR 10,000. The government’s assessment of PKR 5,000 per square foot is far, far better than before, but still only about half of the current prices. Nevertheless, a good step forward. Recommend

  • Arif Ali
    Aug 3, 2016 - 10:09PM

    This is a laudable work done by the present govt. The action has checked untrammelled control of the real estate mafia. Appreciable.Recommend

  • Saad
    Aug 3, 2016 - 10:36PM

    @Arif Ali:
    As written above your current apartment cost is 20 Million then what will be the charges after including all charges for registry?Recommend

  • Saad
    Aug 3, 2016 - 10:43PM

    @Karachi Apartment Seller:
    what will be the total registry cost of your apprtment including w.h.t n c.g.t?Recommend

  • Karachi Apartment Seller
    Aug 3, 2016 - 11:32PM

    @Saad: Regretfully, I sold my apartment 2.5 years ago. I am unsure of what the WHT or CGT would be for a 2 Crore PKR apartment sale, that has an official Capital Gain of 65 lacs, after possession of 4 years. All these things matter. Someone in the taxation field will be better suited to advise. Recommend

  • ismail
    Aug 4, 2016 - 9:09AM

    This move of government is just to discourage investors from investing in Pakistan and revive dubai real estate. Recommend

  • ALI
    Aug 4, 2016 - 9:37AM

    where is the news of Supreme court order Bahria town karachi to stop working immediately..
    and NAB is investigating ??
    isn’t it shame that you didnt reported it at all??Recommend

  • Ghafoor khan
    Aug 4, 2016 - 1:18PM

    The govt want to pay all loans from public, and stop the middle class from investment specially overseas Pakistanis. Recommend

  • Aug 5, 2016 - 12:51AM

    how to talk or conversation in english???Recommend

  • Aug 5, 2016 - 12:51AM

    how to talk in these chatsRecommend

  • Aug 5, 2016 - 12:52AM

    the rent are also effected and which is the last cetegory where can I get the complete detailsRecommend

  • qurrshi
    Aug 7, 2016 - 8:47AM

    Real estate sector in karachi was woeking very well and solvong resodential problems of citozens to great extent but govt has suddenly increased taxes many folds. A middle class family while purchasing house or flat will have to pay as taxes abouy Rs. 3 lacs it means prices of property will be inccreased.Recommend

  • taha
    Aug 8, 2016 - 5:01PM

    @qurrshi lol property prices are getting out of reach of even upper middle class, a poorly built 240 sq yard house in gulshan is selling for around 30 million(3 crore) and same house was selling for 1.5 crore in 2012. Residential sector is working well for builders not the public. Someone with income of 1.5 lac per month is unable to buy a house. Working well lol. .Recommend

  • Asif
    Oct 16, 2016 - 3:59PM

    I purchased a plot on sharing basis (2 equal share holder) in june 2016 in faisalabad. Its declared price was 1380000. What tax I have to pay more in addition I payed transfer fee 02% CVT (25300), 3% stamp duty (37950), Transfer fee (26000). How much tax I have to pay more and is there any adjustable tax which I had paid already?Recommend

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