New measure aims to align reported property values with market realities but draws criticism from real estate experts
The Federal Board of Revenue (FBR) will require individual taxpayers to declare the Fair Market Value (FMV) of all immovable properties—such as plots, homes, apartments, or commercial units, during purchase, sale, or existing holdings, starting July 1, 2025, for the 2025–26 income tax year (brecorder.com). This directive, issued via SRO 1213(I)/2025 on July 7, mandates manual entry of FMV even if the return system auto-fills previous data, with incomplete filings risking invalidation (timesofkarachi.pk).
However, real estate expert Muhammad Ahsan Malik has criticized the move as redundant, noting taxpayers already report purchase values and adding FMV may confuse the public and imply mistrust (brecorder.com). Malik also raised concerns about new filers being unfairly treated as late filers for property-related taxes and overseas Pakistanis facing hurdles in securing non-resident status certificates from Inland Revenue Commissioners—potentially pushing them toward corruption (brecorder.com).
Despite FBR’s stated goal of improving transparency and compliance, critics argue the requirement adds administrative burden and could deter property transactions, especially among overseas Pakistanis. The real estate industry is urging the FBR to refine the policy to balance oversight with efficiency and trust in taxpayer declarations.