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Pakistan to Update Property Valuation Rates from July

Islamabad – Pakistan’s tax authority will implement updated property valuation tables from July 1st 2024 under agreements with provinces, reports say.

The Federal Board of Revenue (FBR) has reached consensus on property valuations with all provinces under the ‘Pakistan Raises Revenues’ programme.

The FBR will determine around 85% of notified rates for immovable properties, calculated in coordination with provinces.

The revised rates aim to improve tax collection starting fiscal year 2024-25.

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The $400 million World Bank loan supporting Pakistan’s revenue drive had its timeline and conditions adjusted.

Key changes are implementing digital data sharing across provinces and increasing the tax-to-GDP ratio from 8.5% to 8.8%.

Loan terms require the FBR to sign automated data sharing MOUs with each province for a unified taxpayer database.

The WB project extends until June 2025 to raise FBR’s collection to 8.8% of GDP in 2025.

Customs clearance efficiency will depend on real-time data, especially goods declarations processed in under 48 hours.

The FBR and provinces have also agreed on sales tax reforms to integrate federal and provincial GST.

The property valuation update and tax administration reforms aim to improve Pakistan’s weak revenue as it tackles economic crisis.

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