FBR Decides to Implement Revised Valuation of Immovable Properties from July1

Islamabad: According to a news article released today, the Federal Board of Revenue (FBR) has signed agreements with all provinces as part of the “Pakistan Raises Revenues” strategy, emphasising the value of immovable property. To support tax collection operations, updated valuation tables will be implemented starting in the fiscal year 2024–2025.

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In cooperation with the provinces, the FBR will determine about 85% of the rates notified for immovable properties. On July 1, 2024, the updated valuation tables are supposed to go into effect. In addition, modifications have been made to the schedule and Disbursement Linked Indicators (DLI) for a $400 million loan that the World Bank (WB) arranged to support Pakistan's efforts to generate income.

 Prominent changes include increasing the tax-to-GDP ratio from 8.5 percent to 8.8 percent and implementing measures for digital data exchange across all provinces. 
To facilitate the creation of a single taxpayer database, the loan terms require the FBR to draft Memorandums of Understanding (MoUs) for automated data sharing with every province. To attain a tax collection of 8.8 percent of GDP in FY25, the WB's "Pakistan Raises Revenues" project has been extended until June 2025.