FBR Updates Property Valuation Criteria for Karachi
The Federal Board of Revenue (FBR) has introduced changes to the valuation criteria for various types of properties in Karachi, including commercial, industrial, built-up, and high-rise buildings. These changes aim to address concerns raised by tax experts and the real estate sector.
Key updates include:
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Property values are now expressed in rupees per square foot.
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Amenity plots are valued at 50% of the respective residential plots.
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Commercial property values are calculated per square foot of the covered area of both ground and additional floors.
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Built-up industrial property values include the entire plot area.
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Residential buildings with multiple storeys will have an increased value of 25% for each additional storey.
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Properties not explicitly categorized will fall under the highest adjacent property category.
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Mixed-use land valuation will be based on the mean prescribed rate.
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Flats are defined as covered residential units with separate property unit numbers.
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Additional storeys in residential buildings are counted if they include a bedroom and bathroom.
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Basement values for commercial properties are 20% of the ground floor value.
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High-rise buildings are defined as those with more than five storeys above ground.
The FBR has also introduced age-related reductions for built-up properties:
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Residential Property: Up to 10% reduction for structures over 15 years old, and open plot value for those over 25 years.
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Flats and Apartments: Up to 50% reduction for structures over 30 years old.
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Commercial Property: Up to 10% reduction for structures over 25 years old.
Additional adjustments include a 15% increase for commercial plots in DHA facing Khayaban, and a 25% reduction for built-up commercial property above the ground floor. Residential plots facing certain undesirable features, such as nalas or graveyards, will see a 20% decrease in value.
These updates aim to provide clarity and address valuation issues, ensuring a fair and transparent process for property owners in Karachi.
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