FBR Freezes New Property Valuation Rates in Islamabad After Market Concerns
Following strong opposition from real estate stakeholders, the Federal Board of Revenue (FBR) has decided to temporarily halt the recently announced property valuation rates for Islamabad. Due to these concerns, the old valuation rates will remain applicable for now.
According to FBR, the previously notified valuation tables will continue to apply until revised rates are issued or till January 31, 2026 — whichever comes earlier.
Why Did FBR Suspend the New Rates?
In earlier December 2025, FBR introduced new valuation rates for residential as well as commercial properties located in Islamabad, through SRO 2392(I)/2025, dated December 8, 2025. The new rates have substantially enhanced the value of properties, making them much closer to market rates.
However, soon after, real estate associations, property dealers, and other stakeholders started opposing this notification. They said that in different sectors of Islamabad, the rates were set higher than market rates, and this would affect the tax liabilities of buyers and sellers.
Upon examining these, FBR accepted that there were indeed legitimate concerns, hence the need for it to suspend the implementation process.
Background of the Issue
The issue of The FBR had been revising the valuation tables all over Pakistan as of October 29, 2024, but Islamabad was exempt from this process because of an ongoing case with the Federal Tax Ombudsman. Once that matter was resolved, Islamabad’s revised tables were issued separately in December 2025.
FBR rescinded it, simply to avert the backlash from stakeholders and disruption in property transactions and market confidence.
What Rates Are Applicable Now?
Until further notice:
• Old valuation tables will continue
These are based on:
o SRO 1180(1)/2022 dt 27th July 2022
o As amended by SRO 1610(I)/2022 dated August 25, 2022
This provides interim relief to the buyers, sellers, and investors, as transactions in property are not burdened by higher incidence of taxes on the disputed valuation.
What This Means for Property Buyers & Sellers in 2025
✔ No immediate increase in property-related taxes
✔ Continuing to utilize valuation rates that are already familiar
✔ More time for open market-related editing
Reduced uncertainty in real estate transactions
Final Thoughts
FBR’s decision to put on hold the new valuation tables simply provides a more consultative and moderate approach in 2025. It has listened to the concerns of stakeholders and also reassessed the market realities to avoid destabilizing the property sector for fairness. In case revised rates are brought about after due consultations, they are likely to be more realistic, transparent, and in tune with the actual market trends, therefore serving the cause of both the taxpayers and the government in the long term.