FBR collects Rs10bn CVT under different heads in 2022-23

ISLAMABAD: The Federal Board of Revenue (FBR) has collected Capital Value Tax (CVT) of Rs 10 billion under different heads during 2022-23 as compared to Rs 104 million in 2021-2022, reflecting an extraordinary increase of 9616.3 percent.

According to the FBR’s data, the collection under Workers Welfare Fund/Workers Profit Participation Fund and the Capital Value Tax has shown a substantial jump during 2022-23. The collection under the head Direct Taxes is composed of collection of Income Tax, Workers Welfare Fund/Workers Profit Participation Fund and the Capital Value Tax.

The Capital Value Tax 2022 was imposed under Section 8 of the Finance Act, 2022 on different assets for tax year 2022 and onwards. In case of a motor vehicle held in Pakistan, CVT is to be charged and collected from July 1, 2022. The CVT was imposed on motor vehicle held in Pakistan; foreign assets of a resident individual and such assets or class of assets as specified by the federal government through a notification in the official Gazette.

The FBR’s data further revealed that the collection of Workers Welfare Fund/Workers Profit Participation Fund amounted to Rs 50.346 billion during 2022-23 against Rs 14.956 billion, reflecting an increase of 236.6 percent.

Total collection of CVT/WWF/WPPF remained Rs 60.451 billion during 2022-23 as compared to Rs 15.060 billion, reflecting an increase of 301.4 percent.

Copyright Business Recorder, 2023