ISLAMABAD: Finally, the Federal Board of Revenue (FBR) has dangled the Statutory Regulatory Order (SRO) 2392(I)/2025, which enhanced significantly the valuation of properties in Islamabad, until January 31, 2026. The FBR increased the valuation to mop up more tax revenues from the property owners in the capital city.
The tax authority issued a formal notification to this effect on Tuesday, placing the controversial measure in abeyance.
The suspended notification had set revised fair market values for residential and commercial properties in the federal capital, triggering strong opposition from the business and real estate communities.
Background to the Valuation Revision
According to the FBR notification, valuation tables for immovable properties across Pakistan were revised on October 29, 2024. However, the revision excluded Islamabad due to a pending complaint before the Federal Tax Ombudsman (FTO).
To address this gap, the FBR later issued SRO 2392(I)/2025 on December 8, 2025, specifically to determine fair market values for properties in Islamabad. The revised tables reportedly increased official property values by as much as 1,700 percent in some residential and commercial sectors, significantly raising tax liabilities for buyers and sellers.
Real Estate Sector Raises Objections
Following the issuance of the SRO, Real Estate Associations and other stakeholders approached the FBR, urging it to review the valuation tables. They argued that the notified rates exceeded prevailing market prices in several localities and failed to reflect on-ground realities.
After examining the complaints, the FBR acknowledged that some of the objections raised by the real estate sector were valid. As a result, the authority decided to re-evaluate the valuation tables for District Islamabad to ensure alignment with actual market conditions.
Earlier Valuation Rates to Remain in Force
In its notification, the FBR stated that SRO 2392(I)/2025 will remain suspended until January 31, 2026, or until the issuance of a revised SRO notifying updated fair market values for Islamabad, whichever occurs earlier.
During this interim period, earlier valuation notifications—SRO 1180(I)/2022 dated July 27, 2022, as amended by SRO 1610(I)/2022 dated August 25, 2022—will continue to apply for tax purposes in the federal capital.
The FBR added that the decision was taken with the approval of the competent authority.
Business Community Welcomes Suspension
The business community had strongly rejected the steep increase in property valuations and announced plans to stage a protest demonstration and sit-in outside the FBR House on December 22 if the notification was not withdrawn.
Traders and real estate stakeholders warned that the drastic hike would stifle property transactions, increase costs for genuine buyers and investors, and further slow economic activity in the capital’s real estate sector.
The suspension of the notification has temporarily eased tensions, while stakeholders now await the FBR’s revised valuation tables, expected after consultations and a fresh assessment of market rates in Islamabad.
