FBR revises property tax rate for Punjab

The Federal Bureau of Revenue (FBR) has revised the property valuation rates for some sectors in 6 cities of Punjab namely: Islamabad, Faisalabad, Gujranwala, Bahawalpur, Multan and Sialkot.

The FBR stated that they aimed to bring the property valuation rates (rate at which the property will be taxed) closer to the prevailing market rates for more accurate taxation. The FBR did not change the previous valuation framework it had notified in 2024. Instead, it focused on tweaking the rates for selected localities and societies where the DC rate did not reflect the market rate, and in some cases, changed the rate at which specific property categories were taxed in some places.

Most of the revaluations targeted posh societies and luxury housing schemes whose rates were considered to be below the market rate, leading to relatively lower taxation. FBR property valuation rates are used to calculate the withholding and capital gains tax that are incurred during property sale and purchase.