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FBR Valuation Bombshell
CategoriesNews Taxes

FBR Valuation Bombshell: Islamabad Property Rates Surge in 2026

ISLAMABAD: A major revision to Islamabad’s property valuation rates, first announced in December 2025, is once again being widely discussed in early 2026 due to its expected impact on taxes and real estate transactions. 

The Federal Board of Revenue (FBR) has sharply increased property valuation rates across the Islamabad Capital Territory (ICT) for 2026. The revision has surprised buyers, sellers, and investors. Many fear it will raise the overall cost of buying and selling property.

The increase was introduced through notification S.R.O. 2392(I)/2026. According to the updated valuation tables, rates have risen by 150% to 200% in many locations. The new valuations apply to 68 residential, commercial, and rural localities across Islamabad. Premium sectors and major housing schemes are among the most affected.

A major change is the introduction of a dual taxation approach. Property owners will now face tax calculations on both land value and superstructure (construction). FBR has also introduced fixed superstructure valuation rates. Buildings up to five years old will be assessed at Rs. 4,000 per square foot. Older structures will be valued at Rs. 3,000 per square foot.

In central Islamabad, the highest residential plot valuation is in Sector E-7, set at Rs. 600,000 per square yard. Sectors F-6 and F-7 are valued at Rs. 500,000, while F-8 stands at Rs. 450,000 per square yard. Other sectors such as F-10, F-11, and G-6 are valued at Rs. 350,000.

Commercial plots have seen the steepest jump. Valuations in E-7, F-6, F-7, and F-8 have reached Rs. 2.5 million per square yard. This is expected to affect commercial leasing and new construction plans.

Farmhouse and industrial areas have also been revised upward. Chak Shahzad farmhouses are now valued at Rs. 11.2 million per kanal. Industrial zones like I-9 and I-10 have been valued up to Rs. 18 million per kanal.

Market experts expect a short-term slowdown in transactions. Many investors may wait for clarity before making deals. The policy is seen as part of broader efforts to document real estate and increase tax collection.

For more news on real estate and development, visit Chakor Ventures.

CategoriesNews Taxes

Rawalpindi faces 57% property tax shortfall as fake bill crackdown begins

RAWALPINDI: The Excise, Taxation and Narcotics Control Department has reported a 57 per cent shortfall in property and professional tax collection across Rawalpindi Division during the first six months of fiscal year 2025–26 (July 1 to December 31), amid mounting economic pressures, including inflation and unemployment.

During a visit to Rawalpindi, Additional Director General Rizwan Akram Sherwani conducted an open hearing to address complaints and petitions filed by taxpayers from Rawalpindi, Jhelum, Attock, and Chakwal. The petitions challenged property tax bills amounting to millions of rupees, with taxpayers alleging excessive and incorrect assessments.

The Additional DG approved all appeals and directed the immediate cancellation of inflated bills, ordering excise inspectors to issue revised and reduced bills strictly in line with applicable laws. Incorrect assessments were annulled, while inspectors found responsible for excessive or fictitious billing were issued strict warnings.

Authorities also initiated action against specific excise inspectors accused of sending fake property tax bills worth millions to major housing societies and later issuing reduced bills after alleged settlements.

In a separate incident, the department imposed a professional tax of Rs 1.5 million on a cricket ground owned by a private housing society near Taxila, prompting strong protests from the management.

Following continued underperformance, the director general of excise has issued show-cause notices to excise inspectors and directed them to recover tax targets within the next two months. Officials reiterated that excessive billing will not be tolerated and urged citizens to pay taxes on time, citing tax compliance as essential for public service delivery.

For more news on real estate, visit Chakor Ventures.

CategoriesNews Taxes

Punjab’s Excise Department Raises Property Tax by Up to 50%

RAWALPINDI: The Excise and Taxation Department of Punjab has recently implemented a significant increase in property tax rates, raising them by 25% to 50%. This hike follows a revision of property DC rates across the province.

In addition to the increased property rates, the department has sent out new tax notices for the upcoming financial year. Citizens are now required to pay their taxes by December 22, even though the notices were sent after this deadline, resulting in additional surcharges on their bills.

The department’s move is part of broader changes made earlier this year when tax rates were increased in January, extending the tax net to include smaller properties, such as homes under 5 marlas, as well as widows. Citizens have also received notices for outstanding taxes spanning the past 1 to 3 years.

Under the revised tax structure, Rawalpindi city has been divided into three categories (A, B, and C), and property taxes are now being calculated according to the new rates based on property size. For instance, individuals who previously paid 25,000 PKR in taxes have now received notices for 50,000 PKR.

While the financial year ends on June 30, tax defaulters are typically given a grace period, yet the Excise Department has already sent out notices for the 2025-2026 financial year. Citizens have raised concerns over the fairness of these actions, demanding intervention from the Chief Minister of Punjab and the Provincial Minister of Taxation to address these unjustified penalties and excessive tax rates.

For more information, visit Chakor Ventures.

Transfer of Property Act in Pakistan
CategoriesReal Estate Taxes

Key Clauses of Transfer of Property Act in Pakistan for Buyers

Imagine Mr. Hamid Ali, a first-time investor in Lahore. He had saved for years to buy a small commercial space, but when the agreement papers landed on his table, he felt lost in legal jargon. Terms like “lease” under the Transfer of Property Act, mortgage clauses, and Section 59 made no sense to him. Many investors like Ali face the same challenge: real estate contracts filled with technicalities that can either safeguard your future or leave you vulnerable. This is where understanding the Transfer of Property Act in Pakistan becomes crucial. The Transfer of Property Act (TPA) governs how property is transferred, leased, mortgaged, or sold in Pakistan. It’s not just a legal document; it’s the foundation that ensures transparency and fairness in real estate transactions. Let’s break it down in simple, conversational terms so you can make informed decisions.

What Is the Transfer of Property Act in Pakistan?

The Transfer of Property Act, enacted during British India and still applicable in Pakistan with modifications, regulates the transfer of immovable property. In essence, it outlines who can transfer property, the rights they have, and how these rights are transferred to others.

Property Transfer Act in Pakistan

One of its most important clauses, Section 6 of the Transfer of Property Act, defines what can and cannot be transferred. For example, property tied to future inheritance or restricted by law cannot be transferred. This clause protects buyers from fraudulent or invalid sales.

Lease Under the Transfer of Property Act

A common transaction in real estate is leasing property. But what exactly is a lease?

Under the Act, a lease is defined as the transfer of the right to enjoy a property for a specified time in exchange for rent or compensation. This differs from ownership here; you don’t “own” the property but have the legal right to use it.

Rights of Tenants Under the Transfer of Property Act

Tenants are also given legal protection:

  • The right to peaceful enjoyment of the property.
  • The right to claim damages if the landlord fails to maintain the premises.
  • The right to remain on the property for the duration of the lease unless lawfully terminated. 

This ensures that both landlords and tenants are bound by fair rules, reducing disputes.

Difference Between Lease and License Under the Transfer of Property Act

Many confuse a lease with a license, but the Act draws a clear distinction.

  • Lease: Grants an interest in the property with legal rights to enjoy it for a period.
  • License: Merely allows the licensee to use the property without creating any legal interest.

For instance, if Ali rents an office space for 5 years, that’s a lease. But if he only gets permission to use a hall for a one-day event, that’s a license.

Different Types of Mortgage Under the Transfer of Property Act

Buying property often involves financing, and mortgages are a central part of the process. It defines different types of mortgages under the Transfer of Property Act, including:

  • Simple Mortgage: Property is security, but possession remains with the owner.
  • Mortgage by Conditional Sale: Ownership shifts if repayment is not made.
  • Usufructuary Mortgage: The lender gets possession and uses the income from the property.
  • English Mortgage: Property is transferred outright but reverts when the loan is repaid. 

Each type carries unique rights and responsibilities, making it essential for buyers to know what they’re signing up for.

Why Buyers Must Understand the Act

The Transfer of Property Act in Pakistan is not just for lawyers; it’s for anyone looking to invest in property. Whether it’s ensuring your lease is valid, knowing your rights as a tenant, or confirming that your mortgage terms are fair, these clauses directly impact your financial future. Ali’s story reminds us that a lack of awareness can lead to confusion or even fraud. But with basic knowledge of the Act, buyers can protect themselves from risks.

How Chakor Ventures Helps You Navigate Property Laws

At Chakor Ventures, we believe real estate investment should be transparent and stress-free. That’s why we don’t just develop properties; we guide investors through critical legal frameworks like the Transfer of Property Act. From understanding the rights of the lessee under the Transfer of Property Act to ensuring compliance with Section 6 and Section 59, we help you make informed decisions that keep your investments secure and profitable. If you’d like a deeper dive into the clauses, check out our detailed guide here: Transfer of Property Act Pakistan.

Why the Transfer of Property Act Matters for Every Buyer and Investor

The Transfer of Property Act Pakistan is the backbone of real estate transactions. It explains everything from leases to mortgages, ensuring transparency between buyers, sellers, and tenants. Key provisions like Section 6 and Section 59, along with clarity on the difference between lease and license under the Transfer of Property Act, can help you avoid costly mistakes. So, whether you’re leasing a property, mortgaging for a new home, or renting out a commercial space, understanding the Act gives you control and confidence. And with Chakor Ventures by your side, navigating Pakistan’s complex real estate laws becomes simpler, smarter, and far more secure.

FAQs

  1. What is the Transfer of Property Act in Pakistan?
     The Transfer of Property Act Pakistan governs how immovable property is transferred, leased, mortgaged, or sold. It ensures transparency and fairness between buyers, sellers, and tenants in real estate transactions.
  2. What is the difference between a lease and a license under the Transfer of Property Act?
     A lease creates a legal interest in the property, granting tenants rights to enjoy it for a set period. A license, on the other hand, only permits usage without transferring any legal interest.
  3. What are the different types of mortgage under the Transfer of Property Act?
     The Act defines several types of mortgages, including simple mortgage, mortgage by conditional sale, usufructuary mortgage, and English mortgage, each carrying unique rights and responsibilities.
  4. Why should property buyers understand Section 6 and Section 59 of the Transfer of Property Act?
     Section 6 defines what property can or cannot be transferred, while Section 59 deals with the legal requirements of mortgage deeds. Knowing these safeguards buyers from invalid agreements and fraud.
Property Tax in Pakistan
CategoriesTaxes

Understanding Property Tax in Pakistan: Rates, Calculation and Payment Guide

When Ahmed finally bought his dream home in Lahore, he thought the hard part was over. But a few months later, he received a notice from the excise department: “Pay your property tax.” Like many first-time buyers, Ahmed was confused. What exactly is property tax? How is it calculated? And most importantly, how can one pay it without standing in long government office lines? If you’ve ever asked the same questions, you’re not alone. Property tax in Pakistan can feel complicated, but understanding the basics makes it much easier to manage. Let’s break it down step by step.

What is Property Tax in Pakistan?

In simple terms, property tax is a tax imposed by the government on the ownership of property, whether it’s residential, commercial, or industrial. This tax is collected by provincial excise and taxation departments, such as Excise Property Tax Punjab or Property Tax Karachi, depending on where your property is located. Think of it as your contribution to city development; the money collected through property taxes helps fund roads, streetlights, schools, sanitation, and public services.

Property Tax

Types of Property Taxes in Pakistan

Different property-related taxes apply in Pakistan. Here are the key ones every property owner should know:

  1. Annual Property Tax: Paid every year to the provincial excise department. For example, property taxes in Punjab, Karachi, and Islamabad each have their own rates.
  2. Capital Gains Tax on Property: This is charged when you sell a property. If you sell within a certain number of years after purchase, the FBR gain tax on property applies.
  3. Advance Tax on Property Transactions: Paid at the time of purchase or transfer of property. Rates vary for filers and non-filers.
  4. Property Excise Tax: Collected by the Excise and Taxation department of each province, e.g., Excise Property Tax Punjab.

How is Property Tax Calculated?

This is where most people get confused. The government calculates property tax based on:

  • Location of property (prime areas like Lahore Cantt or Islamabad G- sectors may have higher rates).
  • Covered area (size of the house or commercial unit).
  • Usage (residential vs. commercial).
  • Property value (as assessed by government rates).

For example, the Punjab Property Tax Calculator available on the excise website allows you to check your tax amount online by entering basic property details. Similarly, CDA Property Tax Islamabad provides an online calculator for Islamabad residents.

Property Tax for Filers vs. Non-Filers

One important thing to note: property tax for non-filers in Pakistan is always higher. The Government encourages citizens to file tax returns by offering lower rates to filers. For instance, the tax on property sales in Pakistan can almost double if you’re a non-filer.

Taxes on property in Pakistan

So if you want to save money, it pays to become an active filer.

How to Check and Pay Property Tax Online

Gone are the days when you had to stand in queues at government offices. Today, you can easily check property tax online and even pay it digitally. Here’s how:

For Punjab

  • Visit the Property Tax Punjab Online Check portal at Excise Punjab.
  • Enter your property details (CNIC, property number, or unique ID).
  • The system will show your tax amount.
  • You can then make a property tax payment online through ePay Punjab or at designated bank branches.

For Islamabad (CDA Property Tax)

  • Head to the CDA Property Tax Islamabad portal.
  • Use the online calculator to determine your payable amount.
  • Pay through online banking or CDA partner banks.

For Karachi

  • The Sindh Excise Department handles the Property Tax Karachi section.
  • Online checking and payment options are available through the official excise website.

This digital transformation means that whether it’s Lahore, Faisalabad, or even Islamabad property tax, you can now manage everything with just a few clicks.

Why Paying Tax Matters

Many people try to avoid taxes, thinking they’re an unnecessary burden. But here’s the reality:

  • It ensures legal ownership and avoids disputes with the government.
  • It contributes to better city facilities like roads, waste management, and security.
  • It prevents penalties and fines for late payment.
  • It strengthens your credibility as a taxpayer, especially when dealing with FBR gain tax on property or selling real estate in the future.

Chakor Ventures Simplifies the Understanding of Property Tax in Pakistan

Chakor Ventures, one of Pakistan’s leading real estate developers, makes it easier for you to understand property tax by bringing authentic and reliable information. It may feel overwhelming at first, but once you know the rates, calculations, and payment methods, it becomes simple. Whether in Karachi, Lahore, or Islamabad, you can now check property tax online, calculate it easily, and pay digitally without hassle. Remember, in real estate, a safe investment is one that’s both legally and financially secure.