The Federal Board of Revenue sets official property valuation rates used to calculate taxes and duties on real estate transactions. These rates often differ from market prices but strongly influence buying and selling activity.
Earlier this month, the FBR revised valuation rates for residential, commercial, and rural properties across the capital. The authority said the changes aimed to reflect market conditions more accurately.
Under the revised assessment, the FBR reduced valuation rates at 68 locations across Islamabad. In Sector B-17, the authority cut the rate for plots with possession from Rs50,000 to Rs30,000 per square yard.
For non-possession plots in the same sector, the FBR lowered the rate from Rs40,000 to Rs15,000 per square yard.
The authority also announced sharp reductions in high-value sectors. In Sector E-7, the valuation rate fell from Rs600,000 to Rs225,000 per square yard. In sectors F-6 and F-7, the rate dropped from Rs500,000 to Rs210,000 per square yard.
Read: FBR Reports Strong Tax Revenue Growth in January 2026
According to the notification, valuation rates issued under SRO-2390 on December 12, 2025, now apply following amendments introduced through SRO-163. Official valuation rates directly determine taxes and registration costs on property transactions. Higher rates increase the financial burden on buyers and sellers.
Real estate professionals have argued that elevated valuations slowed market activity in Islamabad. By lowering rates, the FBR aims to reduce costs and encourage more transactions, especially in premium areas.
Uncertainty remains over implementation. On December 16, the FBR suspended the revised valuation rates just six days after issuing them on December 10. The authority is expected to clarify which valuation schedule currently applies. It may also announce whether further revisions are under review.
The FBR issued revised valuation rates on December 10, 2025, covering residential and commercial properties at 68 locations in Islamabad. The authority suspended those rates on December 16.
It remains unclear how officials will treat transactions completed during the six-day period between issuance and suspension. The FBR has not said whether the suspension is temporary or permanent.
Verification note: Official clarification is required on the applicable SRO and the tax treatment of interim transactions.
