Islamabad: In light of the political instability and volatility in the country, the Federal Board of Revenue has for the time being shelved its plan of increasing 30pc in property valuation rates.
It was reported in June, that FBR was planning to jack up rates further by 25-30pc over the previously increased one’s last year. And valuation in cities which already were on a higher tier would face an increase of 15-20pc only.
According to forecasts, it was hoped that this planned increase of 30pc in valuation rates would result in additional collection of Rs10b during financial year 2017-18 which began on 1st of July. By shelving this planned increase in valuation rates of properties, the FBR will suffer a loss of Rs850m per month.
This measure was also considered to be expanded to other major cities like Okara, Khairpur, Larkana and others as reported in June.
In 2016-17 budget, the government had enacted property valuation rates for the real estate sector which led to price increases in in many major cities like Islamabad, Karachi and Lahore. During the course of the year, the government revenues from this sector were boosted by 100pc reaching Rs15b. This system replaced the prevailing Deputy Collector rates and were higher than it but still 30-40pc less than market valuations.