ISLAMABAD: Pakistan’s Federal Board of Revenue has temporarily suspended the implementation of newly notified property valuation tables for Islamabad after strong objections were raised by real estate stakeholders, a move that is expected to bring relief to buyers, sellers, and investors in the capital’s property market.
According to an official statement issued on Tuesday, the FBR decided to put the revised valuation tables on hold following complaints from real estate associations that the newly set rates were significantly higher than actual market values in several areas of Islamabad. The tax authority has now opted to re-evaluate the fair market values of immovable properties in the Islamabad Capital Territory to address these concerns.
As per the decision, the older valuation regime will continue to apply until revised rates are officially notified or until January 31, 2026, whichever comes earlier. This means property transactions in Islamabad will continue to be taxed under the previous valuation tables for the time being, providing temporary stability to the market amid uncertainty over property prices and taxation.
The suspended valuation tables were introduced through SRO 2392(I)/2025, dated December 8, 2025. Under this notification, the FBR had substantially increased the valuation of residential and commercial properties in Islamabad, with the stated aim of aligning official rates more closely with prevailing market prices. The move was part of a broader effort to enhance tax collection and reduce the gap between declared property values and actual transaction prices.
The FBR clarified that valuation tables across Pakistan were revised on October 29, 2024, except for Islamabad, due to a pending complaint with the Federal Tax Ombudsman. Once the issue was addressed, the Islamabad tables were notified separately in December. However, soon after their issuance, multiple real estate bodies approached the FBR, arguing that the new rates were unrealistic and, in some cases, exceeded actual market values.
Following a review, the FBR acknowledged that several of the objections raised by real estate associations were valid. As a result, the authority decided to reassess the valuation tables to ensure they reflect fair and reasonable market values rather than inflated estimates that could negatively impact property transactions.
During the interim period, the valuation tables notified under SRO 1180(I)/2022 dated July 27, 2022, as amended by SRO 1610(I)/2022 dated August 25, 2022, will remain in force. These older rates will continue to be used for calculating taxes, including capital gains tax and withholding tax, on property transactions in Islamabad.
Market experts believe the FBR’s decision could help prevent a slowdown in real estate activity in the capital, as higher valuation rates often discourage buying and selling due to increased tax liabilities. Stakeholders are now awaiting revised tables that strike a balance between realistic market pricing and the government’s revenue objectives.
