FBR to Issue Increased Property Rates/Revise Tax from July 2024
In a recent update from the officials of the Federal Board of Revenue (FBR), the board has decided to increase the rates of immovable properties across Pakistan. This decision was also approved by the government of Pakistan. The prices of property will be increased and the tax rates will be revised under the “Pakistan Raises Revenues” loan scheme awarded by the World Bank.
The new rates of property and revised rates of tax will be implemented in the year 2024; the main reason behind it is to improve the tax collection efforts. Federal Board of Revenue has already informed the provinces that property valuation rates should be at least 85% of FBR’s proposed rates. Under the Pakistan Raises Revenue initiative, the government of Pakistan and FBR agreed to the World Bank’s policy to increase tax collection on real estate across the country.
World Bank has given guidelines to the tax collection authorities of Pakistan to increase tax collection from all four provinces. The target Pakistan needs to achieve is 8.8% (that was 8.5% in the past) of the GDP by 2025. In addition to increasing property prices and tax rates, FBR is also focusing on other measures to abide by the conditions of the World Bank. FBR is also contacting the provinces and working on different methods to increase tax collection.
Read Also: The DC Value Of Properties Shouldn’t Be Less Than 85% Of FBR Valuation.
Furthermore, under the conditions imposed by the World Bank, FBR is obliged to develop a digital data exchange program from all four provinces of Pakistan. The deadline for a $400 million loan under the “Pakistan Raises Revenues” program has been extended to June 2025 with a tax collection target of 8.8%. It is important to mention that the Government of Pakistan and FBR are mandated to agree to the conditions of the World Bank under the signed Memorandums of Understanding (MOUs).
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