Khalid Imran Chaudhry, founder of the Progressive Union Group of the Islamabad State Agents Association, has strongly rejected the Federal Board of Revenue’s move to raise official property values in the federal capital, calling the step cruel and unworkable for the market. He warned that arbitrary increases in government valuations will burden both buyers and sellers and erode confidence across the sector.
Chaudhry argued that unrealistic upward revisions, in some cases reportedly up to 500 times higher than actual prices, are equivalent to crushing the business community and run counter to national economic interests. He said such a drastic shift in property tax valuations risks deterring foreign investment and could jeopardise the livelihoods of millions associated with real estate and allied services in Islamabad.
In response to the FBR decision, Chaudhry urged Prime Minister Shehbaz Sharif, Interior Minister Mohsin Naqvi and FBR Chairman Rashid Mehmood Langrial to withdraw the new official values and commission a fresh schedule based on consultation with all stakeholders. He also asked the CDA Chairman Muhammad Ali Randhawa to consider reducing transfer fees and to introduce investor-friendly measures to ease transactions in the capital.
Business representatives say sudden and strict tax policies undermine investor confidence and raise operational costs for both small and large enterprises. The introduction of higher property tax liabilities alongside new reporting and verification requirements is expected to slow market activity as buyers and sellers become wary of additional financial burdens and administrative complexity, particularly new filers who may find the process daunting.
Market participants expressed intense resentment after the FBR announcement and warned that the combined effect of higher official values and tougher compliance could prompt investors to withdraw, creating a slowdown in transactions and downward pressure on market dynamics. The association insists a collaborative review is needed to prevent long-term harm to Islamabad’s real estate market and the wider economy.
