FEDERAL BOARD OF REVENUE, GOVERNMENT OF PAKISTAN

FBR has increased property Tax. New Tax Policy is very strict for investors. Higher tax will be deducted at the time of buying or Selling of the property

1- FBR 

Fbr performs the role of collection of taxation in the country from all individuals and businesses.
Evaluation is done per sq yard 

2- FBR TAX AS PER AREA 

FBR evaluate their tax rate as per Area. We will only discuss Bahria town karachi and DHA city Property Advance tax rate

 3- WHITE AND BLACK MONEY

WHITE MONEY 

The money that an individual has proof of earning and deposited in the bank is considered white money. 

BLACK MONEY

The money an individual has no proof of income and has cash money is considered black money.People while selling out the property do not look at the fbr value of the property. For eg a 125 sq yard plot is fbr valued at 14 lac and the market value is 60 Lac. The seller asks for pay orders of the full amount  but the tax is submitted according to the fbr value and the rest of the amount will be black until they submit the return of 1 percent of the remaining amount.

4- DIFFERENCE BETWEEN FBR VALUE AND MARKET VALUE;

1- PLOT VALUE

 For instance if a plot at tariq road is valued at 2cr. But the value government has announced is 60-70 lac. The tax which the government will ask for will be for the value 60-70 Lac. Fbr value is always less as compared to market value.

2- FILER AND NON FILER TAX

  1 percent of the fbr value needs to be paid while purchasing if filer and if non filer 2 percent needs to be paid.

3- OWNED PROPERTY

 If the seller has owned the property for 4 years they do not need to pay fbr tax.

4- FBR TAX BAHRIA TOWN KARACHI CHANGE 

125 Sq yard valuation as per fbr before was 14 lac which now is 15 lac. 10 percent change minor change. 

5- POSH Category 

Maor change in 250 sq yard precinct 1, 6 and 8. 45 thousand per sq yard increased.
167.86 percent change. These precincts are added in Karachi's posh areas and tax is increased according to that. 250 sq yards when purchased will pay 11,250,000. Which must be shown white.

6-CHANGES 

In december when fbr revised the tax. The Difleria defense association showed their concern about different properties and their concerns were acknowledged and taxes were revised accordingly. But no one in Bahria towns Karachi's association showed their concerns that the in precincts 1, 6 and 8 are increased rapidly and added in A category. By next year the charges might increase again and might also be added in A1 category.

JINNAH AVENUE AND MIDWAY COMMERCIAL.

300%  has increased in jinnah Avenue and midway has increased more than double. Old commercial and liberty commercial rate is 46000 per sq yard.
RESIDENTIAL 

Ground+1 after ground value [1cr] adds 25 percent to the first floor.

COMMERCIAL

Ground rate in commercials is less and is increased floor by floor.

Basement value is fixed at 13500 per sq yard.