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 9,616.3 percent.
According to the FBR’s data, the collection under the Workers Welfare Fund/Workers Profit Participation Fund and the Capital Value Tax has shown a substantial jump during 2022-23.
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 the 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 vehicles held in Pakistan; foreign assets of resident individuals 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.
