Stakeholder protest pushed authorities to review decision.
TARIQ KHATTAK
Islamabad (December 17, 2025)
The Federal Board of Revenue suspended new property valuation tables for Islamabad in response to business and real estate protests over rate hikes up to 1,250 percent.
Business leader and former president of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, said in a statement issued here today that the suspension shows authorities are willing to work with the business community to address valid concerns.
On December 8, 2025, the FBR announced SRO 2392(I)/2025, which sharply increased property values. Sector E-7 plots were set at Rs 600,000 per square yard, and F-6/F-7 commercial spaces at Rs 2.5 million per square yard. The notice imposed a superstructure tax of Rs 4,000 per square foot for buildings up to five years old and Rs 3,000 for older ones.
The sudden valuation jump sparked concern, with real estate groups threatening to stage a protest outside FBR House, arguing that the move during an economic slowdown would stall property deals and drive away investors. This decision came despite the FBR already collecting Rs 103 billion from real estate income tax in the first five months of the fiscal year which is an 18 percent increase over the same period last year.
FBR faces revenue pressure, risking a shortfall of Rs 560 billion against the target. Collection patterns have changed, Rs 71.5 billion was collected from property sales between July and November, an increase of Rs 28 billion or 66 percent over last year. In contrast, purchase collections fell to Rs 31.3 billion, down by Rs 12 billion, or 28 percent, indicating sellers are seeking to offload properties while buyers remain cautious.
After receiving complaints, the FBR issued a formal notice stating that valuation tables will be reviewed to ensure fair market conditions and SRO 2392(I)/2025 is on hold until January 31, 2026. Shahid Butt said the move helps restore investor confidence.
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