FBR decides to increase immovable property valuation by up to 75%

The Federal Board of Revenue (FBR) has decided to increase property valuations by up to 75%.

Property valuations have been determined for 42 major cities across the country, and the revised prices have been finalised, Express News cited FBR sources.

A notification regarding the new property valuations is expected to be issued soon. The valuations have been determined based on fair market value and location.

In the next phase, the new property valuations for an additional 15 cities will also be included in the list.

Earlier yesterday, Federal Board of Revenue (FBR) Chairman Rashid Langrial has issued a stern warning that large-scale action against non-filers will begin after November 1.

Speaking to the media in Islamabad on Thursday, Langrial revealed that the number of income tax returns filed has exceeded four million, doubling compared to last year.

“There will be no extension in the deadline for submitting income tax returns,” he said, reiterating that the final date for submissions is October 14.

Langrial added, “We have complete data on non-filers, and action will commence on a large scale from November. The prime minister has directed that no tax evaders should be spared.”

The FBR recently decided to impose 15 restrictions on tax defaulters, removing the non-filer category. Initially, five key measures will be enforced, including restrictions on property transactions, vehicle purchases, international travel, opening current accounts, and investing in mutual funds.

Meanwhile, Finance Minister Muhammad Aurangzeb had stated earlier on Thursday that there is significant potential for tax collection. There is Rs3,400 billion worth of tax evasion and fraud in the country.

The cement sector alone could generate an additional Rs18 billion in taxes, the battery sector could yield Rs11 billion, and the beverage sector faces a tax shortfall of Rs11 billion.

He further noted that only 14% of the 300,000 manufacturers are registered, and there is a tax shortfall of Rs18 billion in the textile weaving sector. In the iron and steel sector, Rs29 billion is being lost due to excessive input tax claims.

The Finance Minister had recently also disclosed that large corporate firms in Pakistan are involved in an astonishing Rs3.4 trillion annual sales tax fraud. This raises serious concerns about the effectiveness of the country's regulatory framework, especially since only 14% of 300,000 manufacturers are registered with the Federal Board of Revenue (FBR). The FBR has identified Rs227 billion in fraud across five major sectors following the appointment of Chairman Rashid Langrial.

Companies have been fraudulently claiming 25% of total sales in input tax adjustments despite benchmark rates of 4% to 7%. With potential sales tax revenue of Rs6.5 trillion, only Rs3.1 trillion has been collected. The steel sector has seen Rs29 billion in fraud, while the cement and battery sectors reported excess claims of Rs18 billion and Rs11 billion, respectively. The textile sector also showed alarming figures, with claims exceeding Rs169 billion.

Aurangzeb emphasized that sales tax fraud is a criminal offense, with severe penalties, including possible imprisonment for up to 10 years. The findings highlight the urgent need for reforms and stricter enforcement to address widespread tax evasion and restore integrity to Pakistan's tax system.