July 24, 2019 (MLN): Federal Board of Revenue (FBR) on Tuesday, issued a notification regrading increase in the valuation rates of immovable property in 20 major cities of the country.
The valuation rates have been amplified for the purpose of federal tax collection on sale and purchase of commercial and residential property, which are applicable from today, July 24, 2019.
Among the largest cities, the average increase in valuations in Karachi is around 19.3%.
As per the notification issued, the valuation of open plot per square yard in certain areas of Karachi for residential purposes on average increased by 33%, whereas, the valuation rate of residential built-up property per square yard on average surged by 23%.
The value in respect of a residential building consisting of more than one storey shall be increased by 25% for each additional storey i.e. value of each storey other than ground floor shall be calculated at 25% of the value of the ground floor.
For commercial purposes, the valuations in open plot and built-up property per square yard increased by 30% and 22% on average respectively.
For industrial purposes, the average valuations of open plot and built-up plot have been increased by 3% and 20% respectively, while the value of flats and apartments surged by 4% on average.
The area-wise categorization has revealed that Karachi has been divided in to 196 areas for the purposes of valuation.
Under this categorization, properties on Abdullah Haroon Road, Bath Island, I.I. Chundhrigar Road, PECHS and Defense are among 22 localities listed under the 'A-1' category. Residential plots in this category have been valued at Rs65,000 per square yard, while commercial plots have been valued at Rs150,000 per square yard, showing 50% and 25% increase in values when compared with previous hike in February 2019.
The areas listed under ‘I’ category, the valuations of commercial and residential plots have been assessed at Rs 40,000 per square yard and Rs 110,000 per square yard respectively.
Meanwhile, the areas listed under category ‘II’, the residential and commercial plots have been valued at Rs19,000 and Rs95,000 respectively while the built-up properties for commercial and residential purposes in this category have been valued at Rs50,000 and Rs 28,000 respectively.
In the rest of the categories, the significant increase in valuations have been assessed.
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