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FBR announces a significant increase in the value of Karachi real estate
KARACHI: The Federal Board of Revenue (FBR) has announced a significant increase in valuation of immovable property in Karachi for collection of holding tax.
After a period of two years, the FBR revised the value of immovable assets. The Board of Revenue has issued new and revised value tables for the major cities of the country.
Significant increase in value can be seen by comparing the values of the latest and previous tables. A residential open plot in Defense, Karachi costs Rs. 73,125 per square yard, up from Rs. 42,000 per square yard which was earlier Rs.
Similarly, the value of residential property has been increased from Rs 48,000 to Rs 81,000 per square yard.
The Apex Tax Authority had earlier reviewed the valuation of immovable property in February 2019 and since then, on December 1, 2021, it has given new prices.
The FBR value of immovable assets serves as a guideline for the collection of wood holding tax at the time of sale and acquisition.
It collects withholding tax on sale and acquisition of immovable property under sections 236C and 236K. The Provincial Registrar is responsible for collecting the holding tax from the Board of Revenue.
According to FBR sources, the rise in real estate prices will bring prices closer to fair market value and reduce the spread of illicit money in the real estate industry.
In addition, further adjustments in the value of the property will help the FBR generate significant funding.