The Federal Board of Revenue (FBR) on Tuesday set new property prices for 16 major cities of Pakistan. The move will provide a new base for the collection of withholding and capital gains tax. The rates have been notified with effect from 31st July 2016.
FBR notified rates for Abbottabad, Faisalabad, Gujranwala, Gwadar, Hyderabad, Islamabad, Karachi, Lahore, Mardan, Multan, Peshawar, Quetta, Rawalpindi, Sargodha, Sialkot and Sukkur.
FBR picked 21 cities for determining fresh property prices during its negotiations with the representatives of real estate sector. The prices of the remaining 5 cities will be notified in the next few days.
Karachi has been divided into 9 categories. Residential and commercial plots have been assigned different prices, according to the notification. Furthermore, FBR has also set prices for the already constructed commercial and residential properties. Withholding tax rates range from 1% to 4% while the CGT rates are in the range of 5% to 10%.
Since it involves substantial revenue implications, the FBR has directed all its chief commissioners to monitor the matter personally. According to the notified rates, the FBR will collect withholding tax on the sale and purchase of immoveable property.
Property prices in Karachi
Karachi is divided into 9 categories for the purpose of collecting taxes. The ‘A-One’ category comprises areas of Dhoraji, Clifton, Civil Line, DHA phase 1 and 2. Under this category, the prices (per square yard) are as follow:
• Residential plots – Rs 35,000/-
• House – Rs 40,000/-
• Commercial property – Rs 100,000/-
• Flats – Rs 5,000/- (per square feet)
The ‘One’ category includes the areas of DHA phase 4 and 6, Bombay Bazaar, Burns Road, and Fatima Jinnah Colony. Under this category, the prices (per square yard) are as follow:
1- Residential plots – Rs 25,000/-
2- House – Rs 32,000/-
3- Commercial property – Rs 75,000/-
4- Flats – Rs 4,500/- (per square feet)
Prices in Gwadar
The FBR has notified Gwadar city rates in terms of per acre and square yards. The city is being developed as part of China-Pakistan Economic Corridor (CPEC). The maximum per acre price is set at Rs 15 million for airport road land followed by Rs 13.8 million for SHS commercial. The maximum per 1,000 square yard rate has been notified at Rs 5.4 million for Marine Drive Ankara Junubi and new town housing scheme.
Prices in Islamabad
The prices of plots have been increased from Rs 22,000/- to Rs 56,000/- per square yard in Sector-7.
Similar to Sector-7, prices in Sector F-6 have been increased from Rs 18,000/- to Rs 48,000/-. In Sector F-11 prices have been increased from Rs 18,000/- to Rs 42,000/-. Sector G-7 will see the prices go up from Rs 16,000/- to Rs 41,000/-. Prices in Jinnah Avenue have also been increased from Rs 75,000/- to Rs 114,000/-.
Per square yard prices of plots in Sector-11 and Sector I-8 have been set at Rs 26,000/- and Rs 38,000/-.
The property prices have doubled in Islamabad’s blue area. Ground floor shops in the supermarket area are priced at Rs 123,000/- per square yard. In Sector F-8, the ground floor is priced at Rs 58,000 and Sector F-9 is priced at Rs 70,000.
Prices in Lahore
The residential property at Azam cloth market has been priced at Rs 3.8 million per marla. Per marla prices of commercial properties in Lahore also vary, ranging up to Rs 5.6 million in Lyton road. However, these prices seem very low than the prevailing market rates.
Prices in Peshawar
The notified prices for residential areas vary from as low as Rs 22,000/- per marla to Rs 1.1 million in Saddar bazaar.
Prices in Hyderabad
Hyderabad property valuations have been notified on the pattern of Karachi. However, the rates are relatively lower than in the country’s largest metropolitan. The notified rates for Sukkur are even lower than Hyderabad rates.
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Source: Express Tribune