The Federal Board of Revenue has notified amended property valuation rates for Karachi with a view to bringing them closer to the actual market prices.
For properties in Karachi, a new category ‘I-plus’ has been formulated, where commercial properties – plots and build-ups, have been revalued at Rs160,000 and Rs80,000 per square yard.
The commercial properties of Defence Housing Authority (DHA) phase I to VIII falls in this new category. Previously, most of these commercial properties fell in ‘I’ category, which had a valuation of Rs123,750 for plots and Rs73,125 for built-up properties, showing 30 per cent and 9.4 per cent increase respectively.
The value of DHA commercial plots facing the different Khayabans have increased by 10 per cent. The value of commercial buildup units excluding the ground floor is reduced by 25 per cent.
In the case of DHA residential plots with some drawbacks, like if they are facing Nullahs, commercial plots, school, mosque or a graveyard or is a rear plot (backside plot) or a triangle plot, would see a decrease in the valuation rates by 25 percent. A rear plot is the one lying behind the front portion only connected with a separate narrow corridor and not visible from the road.
The FBR has also given year-wise depreciation value of commercial built up properties. There will be no reduction in value of properties up to 10 years, followed by a 5 per cent decrease in that for 10-15-year-old properties, an 8 per cent decrease for 15-20-year-old properties and a 10 per cent depreciation for all properties over 20 years.
