AVN 67.10 Increased By ▲ 1.97 (3.02%)
BAFL 29.87 Increased By ▲ 0.17 (0.57%)
BOP 4.07 Decreased By ▼ -0.38 (-8.54%)
CNERGY 3.73 Increased By ▲ 0.10 (2.75%)
DFML 12.25 Decreased By ▼ -0.29 (-2.31%)
DGKC 45.53 Increased By ▲ 0.13 (0.29%)
EPCL 46.99 Decreased By ▼ -0.01 (-0.02%)
FCCL 12.00 Decreased By ▼ -0.20 (-1.64%)
FFL 5.95 Decreased By ▼ -0.08 (-1.33%)
FLYNG 6.11 Decreased By ▼ -0.07 (-1.13%)
GGL 11.90 Increased By ▲ 0.10 (0.85%)
HUBC 68.49 Decreased By ▼ -0.17 (-0.25%)
HUMNL 5.75 Increased By ▲ 0.01 (0.17%)
KAPCO 25.24 Decreased By ▼ -0.01 (-0.04%)
KEL 2.13 Increased By ▲ 0.02 (0.95%)
LOTCHEM 25.43 Decreased By ▼ -0.01 (-0.04%)
MLCF 25.73 Increased By ▲ 0.13 (0.51%)
NETSOL 77.85 Increased By ▲ 0.64 (0.83%)
OGDC 88.09 Increased By ▲ 1.08 (1.24%)
PAEL 11.52 Increased By ▲ 0.31 (2.77%)
PIBTL 4.14 Decreased By ▼ -0.04 (-0.96%)
PPL 68.35 Increased By ▲ 1.83 (2.75%)
PRL 13.22 Increased By ▲ 0.11 (0.84%)
SILK 0.88 Increased By ▲ 0.02 (2.33%)
SNGP 41.72 Increased By ▲ 0.46 (1.11%)
TELE 7.97 Decreased By ▼ -0.10 (-1.24%)
TPLP 15.41 Increased By ▲ 0.16 (1.05%)
TRG 112.73 Increased By ▲ 1.41 (1.27%)
UNITY 14.12 No Change ▼ 0.00 (0%)
WTL 1.22 No Change ▼ 0.00 (0%)
BR100 4,142 Increased By 39.4 (0.96%)
BR30 14,939 Increased By 97.9 (0.66%)
KSE100 40,878 Decreased By -40.5 (-0.1%)
KSE30 15,088 Increased By 44.9 (0.3%)
Follow us

ISLAMABAD: The government has initiated recovery proceedings against over 200 super-rich people of Karachi, who were reluctant to pay the Capital Value Tax (CVT) to the tune of Rs3 billion on their foreign assets held abroad. Sources told Business Recorder Friday that out of Rs3 billion recoverable, Rs1.3 billion has already been recovered from these super-rich individuals.

The attachment of the bank accounts of these people has been started in the first phase.

The Federal Board of Revenue (FBR) has adopted coercive measures against these super-rich individuals who failed to pay CVT on foreign assets. The FBR has issued orders against 200 rich people after their failure to respond to repeated notices.

The policy is to take action against the elite class who are not ready to pay the due amount of taxes. The relevant Automatic Exchange of Information (AEOI) Zone of the Large Tax Office (LTO) Karachi has taken this bold step against the super-rich defaulters of the CVT after the fulfillment of all legal formalities and procedures.

CVT on foreign assets, tax on ‘deemed income basis’: FBR decides to publish richest defaulters’ names

So far, 40 bank accounts have been attached and an amount of Rs1.3 billion has been recovered from these persons including businessmen and bankers.

The tax department has attached 15 bank accounts of the super-rich people in Karachi in a single day (Friday). This month, 25 bank accounts have so far been attached. The recovery process of attachment of bank accounts would continue in coming days.

The remaining bank accounts will also be attached after the completion of legal formalities. These persons are not responding to the notices of the FBR and the Commissioner Appeals has confirmed the orders of the tax department.

There was a perception among these persons that recovery notices would not result in actual attachment and recovery of the amount from their bank accounts, officials said.

After the attachment of bank accounts, the next measures would be the attachment of their immovable properties and the possibility of arrest, sources said.

According to the sources, the CVT on foreign assets was due by December 15, 2022. Around 6,000 rich people are required to pay the CVT on foreign assets and nearly 4,000 were required to pay the super tax on high-income earners.

Presently, there is no bar on the government to collect CVT on foreign assets and tax on deemed income basis in Sindh, the sources said. The taxpayers/resident individuals who failed to deposit Capital Value Tax (CVT) on their foreign assets by December 15, 2022, are liable to pay the default surcharge at the rate of 12 percent per annum.

The one percent CVT is applicable on the value of foreign assets of a resident individual where the value of such assets on the last day of the tax year in the aggregate exceeds Rs100 million.

The last date for filing of electronic declaration and payment of the CVT on foreign assets was December 15, 2022.

Under the Capital Value Tax Rules, 2022, the value of foreign assets shall be converted into rupees for the calculation of CVT on foreign assets of resident individuals.

Copyright Business Recorder, 2023


1000 characters
Toto Mar 18, 2023 08:55am
What is the government right in collecting tax from some one having property abroad .. it's their money their earnings... Bring the corruption based assets back from abroad that was your challenge
thumb_up Recommended (0) reply Reply
Bilwani Mar 18, 2023 12:24pm
@Toto, who the he'll will account these haram Khoor beurocrate and politician only those tax payers are account who pay tax just compare the live style of berocrates with their tax payments
thumb_up Recommended (0) reply Reply
Shiteistan Mar 18, 2023 12:39pm
More money to be made by Tax officials. Hahahaha
thumb_up Recommended (0) reply Reply
Owais Mar 18, 2023 01:34pm
A very good step by FBR to collect taxes from rich people who have assets abroad.
thumb_up Recommended (0) reply Reply
Abba ji Mar 18, 2023 03:04pm
FBR, opening new doors for their own benefits.
thumb_up Recommended (0) reply Reply
Ulgen Mar 18, 2023 05:18pm
Take this money and give it to thieves like Sharifs and Zardaris. I know you will not publish this but I tried
thumb_up Recommended (0) reply Reply
Nasir Zuberi Mar 18, 2023 06:03pm
This charity should have begun from Nawaz, Shahbaz and Zardari. They have assets abroad and beyond imaginable count. Swiss banks are full of billions of dollars, houses and businesses are separate. Just another opportunity for FBR's teams for making money.
thumb_up Recommended (0) reply Reply
Xavier B .J. Dsouza Mar 18, 2023 07:09pm
@Nasir Zuberi, well said
thumb_up Recommended (0) reply Reply
Xavier B .J. Dsouza Mar 18, 2023 07:11pm
Rob the poorest of the poor and fill your corrupted stomachs, your pockets are without holes, and sadly this same I'll gotten wealth is fed to your chuldren, Shame, shame, ▪and no shame
thumb_up Recommended (0) reply Reply
Alee Mar 18, 2023 10:20pm
State lost financers confidence 3 billions lost worth it's just play Karachi pay tax others are exempted
thumb_up Recommended (0) reply Reply
Alee Mar 18, 2023 10:21pm
Karachi traders pay tax state dancing and enjoying on it Everyone is exempted by plan
thumb_up Recommended (0) reply Reply
Qasim Mar 19, 2023 06:19am
@Toto, hahaha.. jumping the ship, may be with some other name, you will be advocating for poor to tax rich and not poor…old useful formula to criticise any govt..keep it up
thumb_up Recommended (0) reply Reply
KhanRA Mar 19, 2023 12:17pm
Wow 200 people in a country of 220 million must pay tax one time. Wow!
thumb_up Recommended (0) reply Reply
Shafiq Mar 19, 2023 12:21pm
GoP also needs to rope in the non tax payer agricultural land holders. They have been running around scot free forever.
thumb_up Recommended (0) reply Reply
Ashhad Mar 19, 2023 12:39pm
How about broadening the tax base .
thumb_up Recommended (0) reply Reply
Jamal Mar 19, 2023 12:56pm
@Nasir Zuberi, Fully agree.
thumb_up Recommended (0) reply Reply
Shabbir Hussain Mar 19, 2023 06:24pm
A good step taken by Govt
thumb_up Recommended (0) reply Reply
E Mar 20, 2023 09:01am
I hope the super rich list contains politicians from all leading parties
thumb_up Recommended (0) reply Reply

Over 200 super rich people in Karachi: Recovery proceedings initiated

Imran gives consent to call all parties conference to discuss elections: Fawad

Terrorism cases: Imran Khan granted protective bail by LHC

Rupee makes minor gain against US dollar, settles at 283.92

Pakistan careening towards potential default if IMF aid does not arrive: Bloomberg

Oil rises for second day as banking fears ease for now

Three soldiers martyred in DI Khan attack: ISPR

Xi calls Russia ties priority on Moscow trip

Auto sector woes: Hinopak suspends assembly plant operation

Auto financing dips for eighth consecutive month

IMF bailout not a silver bullet for Sri Lanka, says Moody’s Analytics