FBR Announces Changes to Property Valuation Rates in Karachi

The Federal Board of Revenue (FBR) has revised criteria for calculation of values of commercial property, buildup industrial property value, built-up property, amenity plots, high-rise buildings and residential buildings in Karachi. The FBR has issued S.R.O. 144(I)/2025 to amend S.R.O.1724(l)/2024 to clarify valuation related issues in Karachi. The issues were raised by tax experts and real estate sector in Karachi. The same valuation tables of S.R.O.1724(l)/2024 would remain intact but the procedure for calculation of values has been clarified for different categories of properties. In the aforesaid Notification, after the Table, the following shall be inserted, namely:-  (a) values in the above Table are in rupees;  (b) value is per square foot of the covered area of the ground floor plus covered area for the additional floors;  (c) values for the amenity plots shall be 50% of the residential plots of the respective area;  (d) commercial property built up value is per square foot of the covered area of the ground floor plus covered area of the additional floors, if any;  (e) built-up industrial property value is per square foot of the entire plot area plus covered area of the plot per square foot;  (f) value in respect of a residential building consisting of more than one storey shall be increased by 25% for each additional storey, i.e. value of each storey other than ground floor shall be calculated @25% of the value of the ground floor;  (g) a property which does not appear to fall in any of the categories shown in the property valuation table shall be deemed to fall in the adjacent highest property;  (h) whether the land has been granted for more than one purpose viz. residential, commercial, and industrial, the valuation in such a case shall be the mean/average prescribed rate;  (i) a flat means the covered residential tenement having separate property unit number/sub-property unit number;  (j) in residential, multi-storey buildings, an additional storey shall be charged if it consists of a bedroom and bathroom;  (k) the rates for basements of built-in commercial property shall be 20% of the value of the ground floor;  (l) high rises means a building with storeys above ground plus five;  (m) The value of the residential built-up property (including basement and first floor) is allowed to be reduced according to the following criteria, namely:-  (n) The value of built-up property (flats and apartments) is allowed to be reduced according to the following criteria, namely:-  (o) The value of commercial built-up property is allowed to be reduced according to the following criteria, namely:-  (p) The value of the commercial plots of Defence Housing Authority (DHA) facing any Khayaban shall be increased by 15%.  (q) The value of commercial built-up property (excluding the ground floor) shall be reduced by 25%.  (r) The value of residential plots in the following categories shall be decreased by 20%: