Karachi: The Sindh High Court (SHC) on Thursday instructed the Federal Board of Revenue (FBR) to outline a concrete and detailed mechanism for the payment, collection and recovery of the Capital Value Tax (CVT) on foreign assets owned by resident Pakistanis, according to news sources.
As per the sources, the SHC has directed the board to prescribe the time, mode, and manner for the payment of collection and recovery of CVT on foreign assets that have been imposed through the Finance Act, 2022. It was highlighted that FBR has imposed the CVT on assets held internationally by Pakistanis but is yet to prescribe time, mode and manner for the payment of collection and recovery of the tax. After the notification is issued to this effect by the board, the SHC will examine the procedure.
In a previous development, the FBR issued notices to Pakistanis with foreign assets (as declared through their returns of income for the tax year 2021) to pay CVT for the tax year 2022. An official from the Large Taxpayers Office (LTO) Karachi stated that the CVT at 1% has been imposed through Section 8, Finance Act, 2022 on people having foreign assets worth over PKR 100 million.
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