The Latest FBR Property Valuation Rates in Pakistan Official (2023)

The Federal Board of Revenue (FBR) has been gradually bringing its FBR property valuation rates (aka immovable properties valuation rates) closer to market value ever since it was authorized to notify valuations in the main urban centres of the country in 2016.

They had already raised valuations rates two times, i.e. in 2018 and 2019.

The rates were revised as per areas in 39 cities, whereas in Karachi the increase was made according to various categories.

The FBR has decided to raise the valuation rates of immovable properties for different cities in the budget for 2020-21.

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Here are 3 types of valuations of real estate:

(1) DC Valuation Rate:

Property DC Valuation rates are used for calculating taxes such as stamp duty, Advance, and Capital Gain Tax (CGT) etc Property Registration Authorities;

(2) FBR Valuation Rate:

The valuation rates of FBR are at which Withholding Tax is charged according to their “filer” and “non-filer”, status and FBR requires an explanation of sources at least to the extent of this valuation.

(3) The Actual Market Valuation Rate:

The actual market value is usually 5 to 10 times more than the DC rate and 2 to 4 times of FBR rate.

Most often, the Property Valuation certificate for Visa Pakistan is made on the Actual Market Valuation Rate.

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You must pay taxes according to the value set by FBR whether you are buying a property or selling your property.

In Fact: The latest revision has been announced on the 2nd of March, 2023.

For the Purchaser (Filer), 3% of the value of FBR rates is collected. For the Non-Tax Filer Purchaser, 10.5% of the FBR rates have to be paid by you.

For the Seller (Filer), 3% of the value as per FBR rates is collected. For the Non-Tax filter seller, 6% of the FBR rates are applicable.

How to Calculate the Tax As Per FBR Property Valuation Rates?

Here is a detailed example to find out the FBR Tax for a seller or buyer (for non-filer and filer status):

[For instance], You are selling a 10-marla plot in a housing project wherein the FBR value is 2.5 lacs per marla so the FBR rate for that plot will be 25 lacs.

Tax-Filer Seller will pay Rs.25000 advance tax, and Non-Tax Filer Seller will pay Rs.50,000 advance tax.

Similarly, the Tax-Filer Purchaser will pay Rs.25,000 advance tax, and the Non-Tax Filer Purchaser will pay Rs.50,000 advance tax.

It is important to know your property rates set by FBR so that you can calculate your selling or purchasing costs.

In some places, you may cost a low tax amount due to low FBR rates, whereas in some areas you may have a higher tax amount due to high FBR rates.

FBR has fixed property values for residential and commercial land in all major cities of Pakistan.

The price per marla or square yard is in the property valuation tables. So that you can calculate the total FBR value depending on land size.

You will find below the table the FBR valuation rates of Immovable Properties of all major cities in Pakistan as updated on March 02, 2022:

FAQs (FBR Property Valuation Rates)

What is property FBR Valuation?

FBR Valuation Rate is where they take Withholding Tax based on if you’re a “filer” or “non-filer.” FBR wants to know where this value comes from, like where the money comes from, and they want a good explanation.

Who does the FBR valuation of the property?

You may contact/consult a licensed lawyer or any other professional sales agent who guides you through the process. 

While the property valuation certificate issued by the Excise and Taxation Department of the government, learn more about it on the following links:

For Punjab: https://excise.punjab.gov.pk/

For KPKhttps://www.kpexcise.gov.pk/app/

For Islamabad (Federal Area): http://www.islamabadexcise.gov.pk/

For Sindhhttps://excise.gos.pk/

For Balochistanhttps://pabalochistan.gov.pk/

How is FBR value of property calculated?

1% of the value as per FBR rates is collected for Tax Filer Seller. Whereas for Non-Tax Filer Seller, it is 2% of the FBR rates.

i. e. You are selling a 10-marla plot in a housing society wherein the FBR value is 2.5 Lacs/Marla. So the FBR rate for that plot will be Rupees 25 Lacs.

What is Statutory Regulatory Orders (SROs)?

SROs stand for Statutory Regulatory Orders; this refers to all kinds of government regulations carried out by FBR and different ministries through delegated powers. These include SROs in the health sector, in taxes, in commerce, in energy, in the auto sector, etc.

I am a filer and I have purchased a plot in May, 2014 for Rs.5,000,000. Now I want to sell the said plot in August, 2016 at the value determined by FBR at Rs.7,500,000/-. What are the implication of taxes?

In your case, the advance income tax under Section 236C at the time of sale shall
be collected from you @1% on the value determined by FBR at Rs.7,500,000/ which works out to Rs.75,000/. This tax is adjustable against tax payable on income earned in the financial year 2016-17. The capital gain on sales of the plot shall be Rs.7,500,000 – Rs.5,000,000 = Rs.2,500,000. That shall be declared in the return for the tax year 2017 relevant to the financial year 2016-17. The capital gain tax shall be payable @ 5% on a capital gain of Rs.2,500,000 i.e. Rs.125,000/-.
The above withholding tax of Rs.75,000/- is adjustable against the tax liability on all types of income including capital gain.

My brother is a non filer. He had purchased a plot in February, 2015 for Rs.6,000,000/-. Now he intends to sell the plot in September, 2016. FBR notified rate at Rs.12,000,000/-. What will be tax implication?

They’ll take 2% advance income tax, which is Rs. 240,000, from your brother since he’s a non-filer and the sale is for Rs. 12,000,000. He can use this advance tax to lower what he owes when he files his tax return.

Now, for the property’s capital gain: it’s Rs. 12,000,000 minus Rs. 6,000,000, making it Rs. 6,000,000. The tax on this is 5% because the property was bought before June 2016.

I am a filer and I want to purchase a property in October 2016, the notified District Collector’s rate before June 2016 was Rs.4,500,000, however, FBR has notified rate Rs.9,000,000/-. Whether all Federal and Provincial taxes shall be paid on FBR rate?

No. FBR-notified rates are for Federal taxes only. In your case advance income tax on the purchase of property under Section 236K shall be collected at the rate of 2% of sales consideration of Rs.9,000,000/- which comes to Rs.180,000/-. Yet, FBR rates don’t count for the stamp duty and other provincial taxes you have to pay.

I intend to purchase a property worth Rs.50,000,000/- at FBR notified rates in November, 2016 and advance tax under section 236K as per FBR notified rate of advance tax would be payable. Whether Commissioner of Inland Revenue shall still be empowered to re-determine the value of property.

No. He has not been empowered to re-determine the value of the property purchased on the valuation as determined by FBR for which advance tax under Section 236K
has been paid on such valuation.

I am a non filer and intend to purchase property at Rs.30,000,000/- at FBR notified rates and required to pay advance tax under section 236K at the time of purchase as per advance tax rates applicable on non-filer. Can the Commissioner ask the question of source of investment in above property?

Yes. The Commissioner of Inland Revenue can request an explanation from you regarding the source of funds used in the investment made in immovable property and may apply the provisions of unexplained income under section 111 after providing you with the opportunity to be heard.

I am a dependent of a ‘Shaheed’,. I was allotted one plot and I have certified official copy of allotment order. Whether any tax is payable on the sale of such plot.

No advance tax under Section 236C shall apply, at the time of registration of
property. Besides no capital gain tax under section 37(1A) of Income Tax. The ordinance shall be payable.

I being a filer and if I purchase property worth Rs.5,000,000 in October 2016. How much tax I will have to pay while filing the return of income if the property is sold for Rs.10,000,000/- in July, 2018?

You owe tax on the capital gain for 2019, which is calculated as Rs. 10,000,000 minus Rs. 5,000,000, giving you Rs. 5,000,000. At a rate of 7.5%, that’s Rs. 375,000. This is because you’ve owned the property for over a year but less than two years.

There is a confusion in the market and different persons are giving different advices regarding payment of capital gain tax at the time of registration of property. What is the legal position?

Capital gain tax under section 37(1A) is levied on the difference between the deal price and the purchase price of the property. Such capital gain tax on immovable property cannot be collected by the registration authorities.

So, when you sell property, you need to pay the capital gain tax yourself when you file your income tax return.

For instance, if you sell property between July 2016 and June 2017, when you file your income tax return for the 2017 tax year, you’ll settle the capital gain tax after accounting for the advance tax you paid under section 236C.

My property is located in the area for which FBR has not notified the value of immovable property. I intend to sell my property immediately but due to non issuance of notification by FBR, the registration authority is reluctant to transfer my property with the advice to wait till FBR notify the valuation of immovable property. What is the FBR position as to whether I shall wait till FBR notify valuation table?

FBR notification shall apply to the areas which are notified in such notifications.
District Officer Revenue or provincial or any other authorized authority for stamp duty will apply the value to the area that has not yet been notified.

I have received 90% of sales considerations of my property before June 2016 and balance amount of 10% is due in August 2016 from buyer as my property will be registered in August, 2016. Shall I pay taxes on my property as per FBR valuation in August 2016?

FBR valuation shall apply to all the transfers of immovable properties from the 31st of July 2016. It is irrespective of receipt of the payment on sale of the property.

You’ll use the FBR valuation to pay upfront tax according to section 236C.

FBR will use the valuation determined to apply capital gain tax under section 37(1A). Taxpayers will need to declare income from capital gain in the return of income for tax year 2017.

I have been allotted land in a Society and I now intend to transfer my property to a buyer. Shall I be liable to pay taxes under section 236C and whether capital gain tax shall also apply in my case?

The provision of advance income tax under section 236C in the case of the seller of
immovable property and provision of section 236K in the case of the buyer of immovable property shall apply on registration of immovable property. Both advance taxes shall also be applicable on attesting the transfer of immovable property.

In your case, there is an attestation of the transfer of immovable property in the Society, therefore, the Society is a withholding agent authorised to collect advance tax from the seller under section 236C and from the buyer under section 236K.

I hope you enjoyed the ICONS (Investment Consultants) blog: The Best Real Estate blog in Pakistan post on FBR’s latest Immovable Property Valuation Rates updated in 2022 of all cities of Pakistan.

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Holds an MBA (Marketing) and is the Founder of ICONS (Investment Consultants) specializing in content marketing. With over 15 years of experience in Real Estate , he has worked extensively as a Valuation Consultant. As a marketing, technology, and valuation expert, he enjoys making complex topics accessible to a large audience. When he’s not glued to his screen, you can find him lost in a book or running.

2 Comments

  • ali 6 months ago

    AOA. How to show your profit on the sale of property higher than FBR or CD rates. i mean what taxes has to be paid and how the extra money is to be shown in tax returns or the wealth statement

    • Icons Team 6 months ago

      Walaikum salam. It is better you contact a tax consultant to guide you an authentic way to deal this matter.

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