Moj EstateCVT, stamp duty and the FBR valuation table, explained
Why the price on your sale deed and the price you actually paid are two different numbers, and what each one is used for.
Every property transaction in Pakistan has two prices attached to it, and confusing them is where most of the anxiety comes from.
The two numbers
The market price is what you and the seller agreed.
The valuation table price is what the authority says a property in that location and size is worth. Transfer taxes are calculated on this figure, not on what you paid.
What gets charged
- Stamp duty — a provincial charge, on the valuation figure.
- CVT (Capital Value Tax) — levied in some jurisdictions, again on the valuation figure.
- Withholding tax — differs for filers and non-filers, and the gap is large enough that becoming a filer before you transact is usually worth the effort.
Why the tables get revised
The valuation tables exist to stop transactions being recorded far below their real value. They are revised periodically, and a revision changes your transfer cost without the market price moving at all. If you are budgeting a purchase several months out, budget for the table you will face, not the one published today.
The practical advice
Ask for the current valuation table figure for the exact block and size before you agree a price, not after. It is a public figure, it takes one phone call, and it is the difference between a transfer cost you planned for and one that arrives as a surprise at the counter.
None of this is tax advice — rates and rules change, and a good lawyer costs less than getting it wrong.
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