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Taxes play a crucial role in shaping investment decisions, property transactions, and business strategy. At Chakor, our Taxes section demystifies Pakistan’s tax landscape as it relates to real estate, construction, and investment, covering policy updates, filing obligations, and the financial implications of every major change.

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FBR Valuation Revision 2026
CategoriesEconomy Property Property Laws Property Taxes Real Estate

Islamabad Real Estate Investment Outlook After FBR Valuation Revision 2026

Executive Summary

The Federal Board of Revenue (FBR) issued S.R.O. 644(I)/2026 on April 16, 2026, implementing sweeping reductions of 10 to 35 percent in official property valuation rates across Islamabad. This marks the fourth major intervention in Islamabad’s property valuation framework within five months, following S.R.O. 163(I)/2026 (February 2) and S.R.O. 332(I)/2026 (February 24, 2026).

The revision is widely seen as a pivotal recalibration that could reignite investor confidence, stimulate transaction volumes, and bring greater documentation to the capital’s real estate market.

1. Background & Policy Context

Pakistan’s property taxation framework has long grappled with a structural gap between official FBR valuations and actual market transaction values. Since 2016, the FBR has been responsible for determining fair market prices for properties in major urban centres. These valuations serve as the basis for calculating federal taxes, including capital gains and withholding taxes.

The current revision cycle began in December 2025, when the FBR suspended fresh property valuations in Islamabad after taxpayers raised concerns about proposed increases of up to 1,250%. The April 2026 notification is the fourth significant intervention in five months, reflecting the urgency of realigning valuations with market realities.

SRO Reference Description Date
Suspension FBR suspends fresh valuations after public outcry over 1,250% hike proposals December 2025
S.R.O. 163(I)/2026 First revised valuation framework issued February 2, 2026
S.R.O. 332(I)/2026 Second revision — further recalibration February 24, 2026
S.R.O. 644(I)/2026 Current notification — 10–35% reductions across sectors April 16, 2026

2. Key Changes in Valuation Rates

The revised valuation tables affect both constructed buildings and open plots across multiple sectors of the federal capital. Below are the most significant changes:

Selected Sector-Wise Valuation Changes (Per Square Yard — Open Plots)
Sector Previous Rate (Rs/sq yd) Revised Rate (Rs/sq yd)
B-17 & C-14 (Residential) 30,000 21,000 (–30%)
G-13 (Residential) 100,000 70,000 (–30%)
Margalla Town / Banigala / Park View / Chak Shahzad Variable Reductions >30%
E-7 (Upscale — Unchanged) 225,000 225,000 (No change)
Building Type Previous Rate (Rs/sq ft) Revised Rate (Rs/sq ft)
Superstructure (≤5 years old) Rs 3,000 Rs 2,500 (–16.7%)
Superstructure (>5 years old) Rs 1,500 Rs 1,200 (–20%)

3. Impact on Investors: Why This is Beneficial

3.1 Reduced Transaction Tax Burden

Every property transaction in Pakistan, whether a house, plot, apartment, shop, or land, requires both buyer and seller to pay advance income tax and withholding tax based on official FBR valuation rates. The FBR collects withholding tax ranging from 4.5% to 11.5% on the sale of property and from 2.5% to 18.5% on the purchase of property. With the new rates cutting valuations by 10 to 35 percent across a wide range of residential and commercial categories, the corresponding tax liabilities on transactions are expected to reduce proportionally.

For a mid-range residential plot in G-13, previously valued at Rs 100,000 per sq yard, a 300 sq yard plot was valued at Rs 30 million. At a 4.5% seller WHT rate, the tax liability was Rs 1.35 million. Under the revised rate of Rs 70,000/sq yd (Rs 21 million total), the same seller now faces WHT of Rs 945,000, a saving of Rs 405,000 per transaction.

3.2 Revival of Short-Term Investment Activity

Prior valuation increases had a measurable dampening effect on market activity. Higher valuations had led to a further decline in transaction volume, particularly affecting short-term investors whose profit margins were significantly eroded by higher taxes. Heavy taxation, coupled with a slow market, had pushed investors away from the real estate sector.

The revised rates are expected to provide relief to the real estate sector and help revive property transactions in the capital. This is especially significant for short-term and mid-term investors who depend on transaction velocity for returns.

3.3 Long-Term Market Transparency and Documentation

Historically, a wide gap between official FBR valuations and actual market transaction values has incentivised undocumented cash dealings. This structural misalignment has been a chronic obstacle for legitimate investors, banks financing property, and foreign direct investment into the sector.

By aligning official rates more closely with market realities, the new SRO encourages buyers and sellers to transact at declared values, thereby improving documentation and transparency across the board. This lays the groundwork for a healthier, more bankable real estate market, one that can attract institutional and overseas Pakistani investment.

4. Expert Analysis & Industry Voices

The following citations are drawn directly from analysts and industry leaders responding to S.R.O. 644(I)/2026:

“Earlier inflated valuations had created hurdles for genuine investors and contributed to a slowdown in property transactions. The new notification reflects a pragmatic approach by the FBR to rationalise property valuations in line with prevailing market conditions.”

— Sardar Tahir Mehmood, President — Islamabad Chamber of Commerce & Industry (ICCI)

“The revision would ease financial pressure on traders and industrialists who have been facing difficulties due to high taxation, thereby reviving business confidence and promoting investment in the real estate and construction sectors.”

— Tahir Ayub, Senior Vice President — ICCI

“Rationalising property values is a step towards creating a more balanced and investor-friendly environment. Such measures are essential to ensure sustainable growth in the property market and encourage greater documentation of the economy.”

— Muhammad Irfan Chaudhry, Vice President — ICCI

Real estate analysts at Pkrevenue have offered a measured assessment, noting that the revised framework could increase transaction costs in prime areas while improving transparency in property deals, but warned that higher valuations may temporarily slow activity in certain segments.

5. Broader Real Estate Market Impact

5.1 Transaction Volume Recovery

The real estate sector had experienced a measurable slowdown in transaction volumes following previous valuation hikes. The revised rates are expected to reverse this trend, particularly in developing and mid-range sectors such as B-17, C-14, G-13, Margalla Town, Chak Shahzad, Banigala, and Park View, which saw the steepest reductions (exceeding 30 percent in several cases).

5.2 Segmented Impact Across the Market

The impact of the revision is not uniform across all market segments:

  • Mid-range sectors: Developing and mid-range sectors (B-17, C-14, C-15, C-16, G-13) will benefit most from valuation reductions, making transactions more financially viable for a broader range of buyers and investors.
  • Prime/upscale zones: Upscale sectors such as E-7 and key commercial corridors in Blue Area, F-8, and G-8 retain existing rates, indicating that the FBR views prime zones as already appropriately valued.
  • Rural Islamabad: Rural areas of Islamabad remain outside the scope of this revision and continue to be subject to the District Collector rates from the July 2025 notification.

5.3 Construction Sector Spillover

Lower transaction taxes and improved market liquidity are expected to generate upstream benefits for the construction industry. Increased buyer activity in the residential sector typically drives demand for new construction, renovations, and ancillary real estate services, amplifying the economic impact of the revision beyond the property market itself.

6. Risks & Caveats for Investors

While the revision is broadly positive for the investment climate, several caveats must be noted:

  • Market conditions: The extent of any recovery in transaction volumes will depend on broader market conditions, interest rates, and purchasing power factors beyond the scope of the valuation revision itself.
  • Policy consistency: The frequency of four SROs in five months raises questions about regulatory stability. ICCI has urged authorities to continue engaging stakeholders in policymaking to ensure sustainable economic outcomes.
  • Prime zone costs: Analysts have cautioned that while transparency improves in most areas, revised valuations in certain prime commercial zones may temporarily increase transaction costs for specific buyer profiles.
  • Structural gap: The gap between official valuations and actual market prices internationally, where tax is typically charged on transaction value, remains a structural challenge that a single SRO cannot fully resolve.

7. Conclusion

S.R.O. 644(I)/2026 represents one of the most consequential recalibrations of Islamabad’s real estate taxation framework in recent years. For investors, the direct benefits are clear: lower transaction costs, improved market liquidity, and a more transparent regulatory environment. For the broader real estate market, the revision addresses a long-standing structural barrier, the gap between official valuations and market realities that had constrained documented investment.

The collective assessment from ICCI leadership and real estate analysts points to one central argument: that realistic valuations are a more effective instrument for achieving both government revenue growth and market transparency. Investors across residential, commercial, and construction segments stand to benefit, provided the regulatory environment stabilises, and further revisions do not undermine confidence.

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Islamabad Property Valuation Rates
CategoriesNews Economy Property Property Laws Property Taxes Real Estate

FBR Revises Islamabad Property Valuation Rates Downward by Up to 35 Percent

ISLAMABAD: The Federal Board of Revenue’s issuance of S.R.O. 644(I)/2026 on April 16, 2026, marks the latest development in a series of property valuation adjustments for Islamabad that began in late 2025. In December 2025, the FBR suspended fresh property valuations in Islamabad after taxpayers raised concerns about increases of up to 1,250%. The April 2026 notification is the fourth significant intervention in Islamabad’s property valuation framework within five months, superseding S.R.O. 163(I)/2026 dated February 2, 2026, and S.R.O. 332(I)/2026 dated February 24, 2026. 

Category Area / Sector Previous Rate Revised Rate Change (%)
Superstructure (≤5 years) All Islamabad Rs 3,000 / sq ft Rs 2,500 / sq ft ↓ ~17%
Superstructure (>5 years) All Islamabad Rs 1,500 / sq ft Rs 1,200 / sq ft ↓ ~20%
Residential Plot B-17 Rs 30,000 / sq yd Rs 21,000 / sq yd ↓ ~30%
Residential Plot C-14 Rs 30,000 / sq yd Rs 21,000 / sq yd ↓ ~30%
Residential Plot C-15 / C-16 ~Rs 30,000 Reduced proportionally ↓ ~30%
Residential Plot G-13 Rs 100,000 / sq yd Rs 70,000 / sq yd ↓ 30%
Residential Plot Margalla Town Higher earlier Rs 38,500 ↓ 30%+
Residential Plot Chak Shahzad Higher earlier Rs 35,000 ↓ 30%+
Residential Plot Banigala Higher earlier Rs 24,500 ↓ 30%+
Residential Plot Park View Higher earlier Rs 24,500–49,000 ↓ 30%+
Residential Plot E-7 Unchanged Rs 225,000 / sq yd No change
Commercial Blue Area Unchanged Rs 40,000–100,000 / sq ft No change
Commercial New Blue Area Unchanged Up to Rs 150,000 / sq ft No change
Commercial F-8 / G-8 Mostly unchanged High values retained Minimal change
Rural Areas Islamabad rural — As per July 2025 rates No change

The Federal Board of Revenue (FBR) has announced a reduction in the official valuation rates of immovable properties across Islamabad, slashing prices by 10 to 35 percent in a move that marks one of the most significant recalibrations of the capital’s real estate taxation framework in recent years.

The revised valuation tables, issued through an official notification on Thursday, apply to a broad spectrum of residential and commercial properties across multiple sectors of the federal capital. The adjustments affect both constructed buildings and open plots, though several prime commercial zones retain their existing benchmarks.

Under the new structure, valuation rates for residential and commercial superstructures up to five years old have been reduced from Rs3,000 to Rs2,500 per square foot, while buildings older than five years will now be assessed at Rs1,200 per square foot, down from Rs1,500.

Developing and mid-range sectors have witnessed particularly steep reductions. Residential plot rates in B-17 and C-14 have been brought down from Rs30,000 to Rs21,000 per square yard, while C-15 and C-16 have also seen proportionate cuts. In the G-series, G-13 has been revised from Rs100,000 to Rs70,000 per square yard. Prominent localities, including Margalla Town, Chak Shahzad, Banigala, and Park View, have each recorded reductions exceeding 30 percent.

Upscale sectors, however, continue to command high valuations. Residential plots in E-7 remain assessed at Rs225,000 per square yard, and key commercial corridors such as Blue Area, New Blue Area, and sectors F-8 and G-8 largely retain their existing rates, ranging between Rs40,000 and Rs150,000 per square foot.

Rural areas of Islamabad remain outside the scope of this revision and will continue to follow rates determined by the District Collector under the July 2025 notification.

The revision is widely seen as an effort to align official property valuations more closely with prevailing market realities, potentially encouraging greater documentation and transparency in real estate transactions across the capital.

What the New Rates Mean for Buyers and Sellers

The revised valuation rates directly affect the tax obligations of both parties in any property transaction. Every property transaction, whether involving a house, plot, apartment, shop, or any other form of land, requires both the buyer and the seller to pay advance income tax and withholding tax based on official FBR valuation rates. An increase in official valuation directly raises the cost of property transactions for both buyers and sellers.

The FBR collects withholding tax ranging from 4.5% to 11.5% on the sale of property and from 2.5% to 18.5% on the purchase of property in December 2025. With the new rates cutting valuations by 10 to 35 percent across a wide range of residential and commercial categories, the corresponding tax liabilities on transactions are expected to reduce proportionally across most sectors.

Effect on Transaction Volumes

Prior valuation increases had a measurable dampening effect on market activity. Higher valuations lead to a further decline in transaction volume, particularly affecting short-term investors, whose profit margins are significantly eroded by higher taxes. Heavy taxation, coupled with a slow market, had pushed investors away from the real estate sector. 

The revised rates are expected to provide relief to the real estate sector and help revive property transactions in the capital. However, the extent of any recovery in transaction volumes will depend on broader market conditions, interest rates, and purchasing power factors beyond the scope of the valuation revision itself.

Business Community Perspective

Real estate analysts have offered a measured reading of the implications. According to Pkrevenue, analysts said the revised framework could increase transaction costs in prime areas while improving transparency in property deals, but warned that higher valuations may temporarily slow activity in certain segments. 

ICCI President Sardar Tahir Mehmood identified the core issue that the revision addresses:

“Noting that earlier inflated valuations had created hurdles for genuine investors and contributed to a slowdown in property transactions, and that the new notification reflects a pragmatic approach by the FBR to rationalise property valuations in line with prevailing market conditions.”

ICCI Senior Vice President Tahir Ayub called for direct financial relief for market participants, stating that:

“The revision would ease financial pressure on traders and industrialists who have been facing difficulties due to high taxation, thereby reviving business confidence and promoting investment in the real estate and construction sectors.”

ICCI Vice President Muhammad Irfan Chaudhry addressed the longer-term structural dimension, remarking that:

“Rationalising property values is a step towards creating a more balanced and investor-friendly environment, and such measures are essential to ensure sustainable growth in the property market and encourage greater documentation of the economy.”

The collective assessment from these voices points to one central argument: that the gap between official FBR valuations and actual market prices had become a structural barrier to legitimate transactions, and that realistic valuations are a more effective instrument for achieving both revenue growth and market transparency.

Policy Consistency and Regulatory Context

Since 2016, the FBR has been determining fair market prices for properties in major urban centres, with the revised property tables used to calculate federal taxes, including capital gains tax and withholding tax. Internationally, tax is charged on the transaction value, but in Pakistan, the collector value is often much lower than the actual transaction value, a structural gap that has complicated property tax policy for years.

The frequency of revisions in the current cycle, four SROs in five months, has drawn attention to the need for a more stable valuation framework. The ICCI urged authorities to continue engaging stakeholders in policymaking to ensure sustainable economic outcomes, reflecting a broader industry call for a consultative and consistent regulatory process going forward.

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CategoriesNews Economy Investment Property Taxes Trade

Pakistan’s OPF launches global outreach drive, seeks mandatory diaspora enrolment

ISLAMABAD: Over 12 million Pakistanis live and work outside the country. Until now, the government had no formal system to register, track, or serve them. The OPF is moving to change that, and its chairman is personally carrying that message to every major diaspora hub.”

Every year, Pakistanis living abroad send billions of dollars back home. Last year, that figure hit a record $38.3 billion. Yet, despite that contribution, the government had no formal, structured relationship with these citizens. That is now changing, and changing fast.

OPF Chairman Syed Qamar Raza Shah is currently on an international tour spanning Japan, South Korea, Germany, and the UAE. At each stop, he has been sitting with Pakistani community members, listening to their concerns, and making commitments on the spot. The tour is not just a goodwill exercise. It is laying the ground for the most significant changes to the Overseas Pakistanis Foundation in its 45-year history.

In Japan, community leader Haji Syed Saleem Shah described the visit as a turning point. Pakistanis there raised long-standing problems, including jobs, education, legal disputes, and property matters back home. For many, it was the first time such issues were heard at a senior government level. The OPF Chairman gave direct instructions for urgent cases to be resolved immediately.

“This visit has given new hope to the Pakistani community in Japan. For the first time, their issues were seriously heard at such a high level.”
— Haji Syed Saleem Shah, Chairman, Ahl-e-Bait Foundation Japan

The same pattern repeated in the UAE. There, the OPF Chairman went a step further — announcing a formal proposal to make OPF membership compulsory for all overseas Pakistanis worldwide. Under the proposal, every Pakistani abroad would be required to register with the foundation and pay a one-time fee of Rs10,000 (around $35). The proposal now awaits approval from Prime Minister Shehbaz Sharif.

To go alongside the obligation, OPF has launched the Overseas Pakistanis Education Fund (OPEF), a scholarship program for children and spouses of overseas Pakistanis studying in Pakistani universities and colleges. The deadline to apply is April 30, 2026.

Two moves together tell the full story: the government wants to register its diaspora, fund its operations through their fees, and in return, invest in their families back home.

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Tax-Free Real Estate Package
CategoriesNews Property Property Taxes

Pakistan Plans Tax-Free Real Estate Package to Attract Overseas Investment

ISLAMABAD: The federal government is working on a comprehensive tax-free real estate investment package designed to attract overseas Pakistanis and foreign investors, with the proposal already submitted to the International Monetary Fund (IMF) for review and approval.

According to official sources, the initiative aims to remove long-standing procedural barriers that have historically deterred expatriates from investing in Pakistan’s property sector. The package is structured to channel foreign currency, particularly US dollars, into the country’s real estate and construction sectors, providing a much-needed boost to both.

The proposed reforms are expected to create more secure real estate options for overseas Pakistanis looking to enter Pakistan’s property market.

Among the key measures under consideration is the establishment of dedicated special investment zones for real estate development, offering streamlined approval processes, infrastructure support, and additional financial incentives to encourage large-scale projects. Authorities are also exploring the introduction of Real Estate Investment Trusts (REITs) and escrow accounts for property transactions, moves intended to enhance transparency and significantly reduce the risk of fraud for investors operating from abroad.

These measures may also increase confidence in real estate investment by improving transparency and reducing procedural risks.

The government is additionally seeking to revise existing taxes on property transactions as part of the broader reform package, though these adjustments remain subject to IMF concurrence. Notably, most of the proposed benefits are expected to be available exclusively to tax filers, with non-filers receiving limited relief under the current framework.

Officials have indicated that the initiative is partly motivated by evolving economic conditions in Gulf countries, where many overseas Pakistanis are based, presenting an opportunity to redirect investment flows back to Pakistan amid regional uncertainties.

Sources familiar with the matter suggest the package could be officially announced as early as next month, pending final regulatory approvals. If implemented, the scheme would represent one of the most substantial efforts in recent years to integrate the Pakistani diaspora more meaningfully into the country’s economic development.

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CategoriesNews Economy Property Laws Property Taxes Real Estate

Balochistan Revenue Authority Mandates Registration of Property Dealers

QUETTA: The Balochistan Revenue Authority (BRA) has directed property dealers, real estate agents, and related service providers across the province to register with the tax authority and comply with the newly enforced sales tax regulations, according to an official announcement issued recently.

Under the directive, individuals and businesses engaged in services related to the buying, selling, and renting of immovable property are required to obtain formal registration with the BRA and ensure the timely submission of tax returns for each applicable tax period. The authority has introduced a 5% sales tax on property-related services in accordance with amendments made by the Finance Act 2025 under the Balochistan Sales Tax on Services Act, 2015.

Officials stated that the measure aims to improve transparency and documentation within the real estate sector, which has historically remained under-regulated in terms of tax compliance. By bringing property service providers into the formal tax framework, the government expects to strengthen provincial revenue collection while promoting accountability in property transactions.

The BRA has warned that failure to comply with the registration and tax payment requirements may result in penalties, legal proceedings, or enforcement actions under relevant tax laws. Authorities emphasized that unregistered agents or those who fail to submit returns could face strict action as part of broader efforts to ensure adherence to fiscal regulations.

Tax officials noted that the initiative is part of ongoing reforms aimed at expanding the tax base and reducing revenue leakage in the service sectors. Stakeholders in the real estate industry have been urged to cooperate with the authority and complete registration procedures promptly to avoid disruptions to their business operations.

The development reflects increasing regulatory oversight of Pakistan’s property market as provincial governments seek sustainable revenue sources amid growing fiscal pressures.

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CategoriesNews Property Taxes

AJK Launches ‘Tax Asaan’ Mobile App to Digitise Revenue Services

MUZAFFARABAD: The government of Azad Jammu and Kashmir (AJK) has launched the Tax Asaan mobile application, a digital platform designed to simplify tax-related services and improve interaction between taxpayers and the revenue department.

The application was introduced as part of broader efforts to modernize the region’s tax administration through technology-driven solutions. Officials stated that the platform enables users to access a range of services through their mobile devices, including verification of sales invoices, viewing registration records, checking tax return details, making online payments, and monitoring the status of applications.

Alongside the mobile app, authorities also introduced a digital monitoring system aimed at strengthening oversight of revenue collection. The system is intended to support administrative planning and enhance efficiency by providing real-time data and performance tracking tools for officials.

The initiative builds upon earlier digital reforms introduced within the tax system, including electronic invoicing mechanisms, and is aimed at improving transparency and reducing procedural delays. By shifting key services online, the government seeks to make tax compliance more accessible while streamlining operational processes within the revenue department.

Officials noted that the introduction of digital platforms is expected to improve service delivery and facilitate easier compliance for taxpayers across AJK. The move reflects ongoing efforts to adopt modern administrative practices and strengthen revenue management through the use of technology.

The Tax Asaan application is now available for public use, marking another step toward digitisation of government services in the region.

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CategoriesNews Property Taxes

FBR Tax Collection Rises 16% in January to Rs1.03 Trillion

ISLAMABAD: The Federal Board of Revenue (FBR) recorded a notable rise in tax collection during January, signalling renewed momentum in Pakistan’s revenue performance. The authority collected Rs1.031 trillion for the month, reflecting a 16 percent increase compared to the same period last year. Although the figure fell slightly short of the monthly target, it points to strengthening fiscal trends heading into the second half of the financial year.

Officials reported particularly strong gains in direct taxation, while indirect taxes showed moderate improvement. January’s income tax receipts posted an impressive 26 per cent year-on-year surge, indicating better enforcement and progress in resolving outstanding tax matters. Sales tax collection also grew by 12 per cent, supported by a rebound in large-scale manufacturing activity.

For the first seven months of FY26, total tax collection reached Rs7.176 trillion, representing an 11 per cent increase from the previous year, though still below the projected target. Shortfalls were largely linked to weaker domestic sales tax performance and earlier uncertainty surrounding the super tax. A recent court decision upholding the levy is expected to generate significant additional revenue, helping narrow the gap in the coming months.

Refund disbursements rose moderately during the period, reflecting improved processing and compliance mechanisms. Federal Excise Duty outperformed expectations, while income tax, sales tax, and customs duties all registered year-on-year growth despite missing individual targets.

FBR officials attribute the improved performance to ongoing structural reforms, expanded digital monitoring, and enhanced enforcement efforts that are broadening the tax base and encouraging voluntary compliance. With economic activity gradually picking up, authorities remain hopeful that sustained growth in manufacturing and trade will help the country move closer to achieving its full-year revenue objectives.

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FBR Valuation Bombshell
CategoriesNews Property 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.

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CategoriesNews Property 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.

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CategoriesNews Property 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.

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