In a significant relief for the business and real estate community in the federal capital, the Federal Board of Revenue (FBR) has temporarily suspended the implementation of the newly notified property valuation table in Islamabad. The decision comes as traders and business groups announced a protest scheduled for December 22, warning of a sit-in outside the FBR headquarters if the rates were not withdrawn.
According to an official FBR statement, the revised valuation rates introduced through SRO 2392 of 2025 have been put on hold for the next one and a half months. The suspension will remain in effect until January 31, 2026, or until a new notification on fair market values for Islamabad’s immovable properties is issued — whichever occurs first.
Business Community Pushback Forces Rethink
Earlier this week, the Islamabad Chamber of Commerce and Industry (ICCI) publicly rejected the revised valuation table, calling the increases excessive and unjustified. The chamber announced plans to stage a protest demonstration and sit-in outside FBR House on December 22, escalating pressure on tax authorities.
The business community’s objections appear to have prompted the FBR to reassess its decision.
Why Islamabad Was Treated Separately
The FBR clarified that revised property valuation tables were rolled out across the country on October 29, 2024, with the exception of Islamabad due to a pending complaint before the Federal Tax Ombudsman (FTO).
To address the issue, the FBR later issued SRO 2392 on December 8, specifically setting fair market values for properties in the capital. However, the notification immediately drew criticism from real estate associations and other stakeholders, who argued that valuations in several areas exceeded prevailing market prices.
FBR Admits Valid Concerns
After reviewing the objections, the FBR acknowledged that some of the concerns raised by real estate associations were valid. As a result, the authority has decided to re-evaluate the property valuation table for District Islamabad.
Until the review process is completed, the previous valuation framework — notified under SRO 1180(1)/2022 on July 27, 2022, and amended through SRO 1610(1)/2022 — will remain applicable. The decision was approved by the competent authority, the FBR confirmed.
Why Property Valuation Matters
Since 2016, the FBR has been responsible for determining fair market property values in major urban centers. These valuation tables are used to calculate federal taxes such as capital gains tax (CGT) and withholding tax. In contrast, provincial property valuations are typically notified by district collectors under Section 27-A of the Stamp Act, 1899.
Unlike many countries where taxes are calculated on actual transaction values, Pakistan relies heavily on collector rates, which often differ significantly from real market prices — a gap that has long been a point of contention.
Massive Increases Spark Outrage
According to the Islamabad Chamber of Commerce and Industry, the new notification raised official residential and commercial property values by as much as 1,700 percent in some areas. The chamber claimed that valuations were increased by 200 percent to 1,700 percent, leading to a sharp surge in transaction costs.
As a result, property transfer fees reportedly jumped from around Rs4 million to as high as Rs10 million, further fueling opposition from businesses and investors.
What Happens Next?
With the revised rates now suspended, the FBR has bought itself time to consult stakeholders and revisit the valuation framework. Whether the final outcome leads to revised, more realistic rates or further confrontation with the business community remains to be seen.
For now, Islamabad’s property market has been granted a temporary reprieve — one that many hope will lead to a more balanced and market-aligned taxation policy.