Islamabad: The Federal Board of Revenue (FBR) is gearing up to roll out revised property valuation rates, effective from July 1, 2024, as part of the “Pakistan Raises Revenues” initiative.
The FBR has reached agreements with all provinces to enhance revenue collection efforts. Under the new valuation tables, the FBR will determine approximately 85 percent of the rates for immovable properties. This move is expected to bolster revenue generation across the country.
The adjustments come from collaboration between the FBR and provincial authorities to streamline tax mechanisms and improve revenue collection. The initiative also aligns with efforts to fulfill Disbursement Linked Indicators (DLI) for a $400 million World Bank (WB) loan.
Key modifications under the loan terms include increasing the tax-to-GDP ratio from 8.5 percent to 8.8 percent and implementing digital data-sharing initiatives nationwide. The FBR is mandated to develop Memorandums of Understanding (MoUs) for automatic data exchange with all provinces to facilitate the establishment of a unified taxpayer database.
The timeline for the “Pakistan Raises Revenues” project has been extended to June 2025, with a target to achieve a tax collection of 8.8 percent of GDP in FY25.
This move will significantly improve revenue collection processes and contribute to Pakistan’s economic development endeavors. For the latest Real Estate News and Blogs, visit Realtorspk blogs.
