Islamabad (Pakistan Point News / Online - 04th August, 2019) Revenue Department of Federal District Administration has started collection of Capital Value Tax (CVT) from all the housing societies including registered and non-registered.On the directions of Additional Deputy Commissioner Revenue (ADCR), Dr Hassan Waqar Cheema, Rs 60m recovered in three weeks, in the next one month there is a target of recovering Rs 80m.According to the sources of District Revenue Department, Federal government imposed CVT tax in the year 2012, according to which in the rural areas of Islamabad, 60 thounand tax was to be charged on the transfer of 1 kanal land, however the housing societies took stay on this tax from the court.
The cases was not pursued since long, taking the charge Additional Deputy Commissioner Revenue (ADCR), Dr Hassan Waqar Cheema pursued the case and court give decision to impose this tax once again.It is worth mentioning here that the Capital Value Tax is applicable in urban areas for residential property exceeding an area of one kanal and in case of commercial properties without any threshold of land area or size of the property.The Capital value tax at the rate of 2 percent of recorded value has been levied vide Finance Act, 2006.
Where the value of such property is not recorded, the CVT is payable at Rs. 50 per square yard of land area.All transfers falling under the scope of purchase, gift, exchange, surrender, power of attorney and relinquishing the rights have been subjected to the capital value tax. However, transactions between spouses, parents, grand parents, brothers and sisters through gift and inheritance have been excluded from its purview.
