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The Federal Board of Revenue (FBR) has suspended its recently issued notification on revised property valuation rates in Islamabad, following strong resistance from the real estate sector and local citizens. The decision was taken on the instructions of the Prime Minister, signaling a temporary pause in the government’s move to update property values for tax purposes.
The FBR had notified new property valuation rates for Islamabad on December 8, aiming to bring official valuations closer to market prices and improve tax collection. However, the revised rates triggered widespread concern among property dealers, investors, and residents, who argued that the changes would significantly increase transaction costs and discourage market activity.
Industry representatives formally rejected the new valuation, warning that it could slow down buying and selling activity at a time when the property sector is already under pressure from high taxes and economic uncertainty.
Market Reaction and Official Response
Following the backlash, the Prime Minister directed the FBR to suspend the notification and review the matter. An FBR official, speaking on condition of anonymity, said the suspension would remain in place until further consultations are held with stakeholders to reach a more balanced and acceptable valuation framework.
The move is expected to provide temporary relief to buyers and sellers, while opening the door for possible revisions that align revenue goals with market realities.
