KARACHI: For the purpose of collecting withholding tax, the Federal Board of Revenue (FBR) has declared a significant rise in the assessment of immovable properties in Karachi.
After a two-year period, the FBR amended the value of immovable assets. The revenue board has released new and amended value tables for the country’s largest cities.
The considerable increase in value may be seen by comparing the newest and prior tables’ valuations. A residential open plot in Defence, Karachi has been valued at Rs73,125 per square yard, up from Rs42,000 per square yard before.
Similarly, the value of residential built-up property has been raised from Rs48,000 to Rs81,000 per square yard.
The apex tax authority had previously reviewed the assessment of immovable properties in February 2019 and since then, on December 1, 2021, it has given fresh valuations.
The FBR value of immovable assets serves as a guideline for withholding tax collection at the time of sale and acquisition.
It collects withholding tax on the sale and acquisition of immovable property under Sections 236C and 236K. On behalf of the revenue board, the provincial registrar is responsible for collecting the withholding tax
According to FBR sources, raising the valuation of immovable properties would bring prices closer to fair market value and minimise the prevalence of illicit money in the real estate industry
Furthermore, the higher adjustment in property value will assist the FBR in generating significant money.