FBR’s Property Tax Revenue Increase Of 58%
Karachi: In the first nine months of the current tax year, the Federal Board of Revenue (FBR) reported that property tax revenue increased by 58 per cent.
The main reason for this growth is the increase in the valuation of real estate.
Between July 2018 and March 2019, the property tax collection amounted to PKR 7.6 billion, while the collection amounted same to PKR 4.61 billion for the previous year.
In February 2019, FBR valuations were raised to increase the number of withholding fees collected. Also, FBR increased the surveillance of the provinces ' property tax collection.The formation of the Immovable Property Directorate also contributed to higher tax collection according to experts.
The fear that FBR can buy their properties forced people to declare their property's value close to its actual value.
The increase in real estate transactions since last year is another possible growth factor.