FBR suspends Islamabad property valuations after massive backlash

The Federal Board of Revenue (FBR) on Tuesday suspended the fresh property valuations for the collection of withholding taxes in the Islamabad Capital Territory (ICT) after taxpayers raised a hue and cry over increases of up to 1,250% in valuations, which they said lacked any rational basis. The development comes on the heels of Rs103 billion in income tax collection from the real estate sector during the first five months of the current fiscal year, which is 18% higher than the last fiscal year, despite depressed market conditions. The FBR had to put on hold its one-week-old statutory regulatory order (SRO), which had again abnormally increased property valuation rates for Defence Housing Authority (DHA) projects by up to 168%, after hiking them barely a year ago.