FBR New Karachi Property Rules: Lower Taxes on Older Homes & Apartments

Karachi, Pakistan – The Federal Board of Revenue (FBR) has issued a new valuation notification for bungalows and flats in Karachi, reintroducing the difference in valuation between old and new properties. The latest update follows amendments to the previous notification dated October 29, 2024.

New Valuation Criteria for Houses

According to the FBR notification, the revised property valuation is based on the age of houses in Karachi:

• Houses aged 5 to 10 years will have a 5% lower valuation.
• Houses aged 10 to 15 years will have a 7.5% lower valuation.
• Houses aged 15 to 20 years will have a 10% lower valuation.
• Houses older than 25 years will have a valuation equal to the plot price.

New Valuation Criteria for Flats

The FBR has also revised the valuation of flats in Karachi, applying significant reductions based on age:

• Flats aged 5 to 10 years will be valued 10% lower.
• Flats aged 10 to 15 years will be valued 20% lower.
• Flats aged 20 to 30 years will be valued 30% lower.
• Flats older than 30 years will be valued 50% lower.

Impact on Property Buyers and Sellers

The revised property valuation will result in lower tax obligations for buyers and sellers. Senior property lawyer Imran Megrani noted that the reduced valuation will lead to decreased taxation, making property transactions more cost-effective.

The FBR’s new valuation framework aims to ensure a fair pricing mechanism while reflecting the depreciation of older properties. This move is expected to impact real estate transactions across Karachi significantly.

Conclusion

With these new property valuation guidelines, real estate investors and homeowners in Karachi must be aware of the revised rates while conducting transactions. The latest FBR notification is likely to influence property market trends, especially for older houses and flats in the city.

For more updates on real estate policies and property valuation, stay tuned.