Provincial governments should rationalize the taxation and duties implicated on the transfer of immovable property to and from REITs (including the Capital Value Tax
, Registration fee and Stamp Duty) as implicated in the province of Sindh.
Table 4 Vertical Distribution of FBR Taxes as per the 7th NFC Award (Rs Million) Federal Revenues Budget Divisible Others Total Estimates Pool 2010-11 Income Tax 633,000 270,220 10,113 280,333 Capital Value Tax
4,700 2,027 28 2,055 Customs 180,800 76,231 5,079 81,310 Sales Tax 674,900 251,802 3,465 255,267 Federal Excise 153,600 63,095 868 63,964 Total 1,647,000 663,375 19,553 682,929 Provincial Revenues Divisible Others Total Pool Income Tax 343,916 8,751 352,667 Capital Value Tax
2,580 66 2,645 Customs 97,021 2,469 99,490 Sales Tax 320,475 99,157 419,633 Federal Excise 80,303 9,333 89,636 Total 844,296 119,776 964,071 Source: Author's estimates based on Budget Estimates of 2010-11, Explanatory Memorandum on Federal Receipts 2010-11.
v) withdrawal of capital value tax
on purchase/sale of properties (which would take care of a possible duplication of tax as this has been levied in the federal budget), while the non-transferablepurchase/sale through development organizations/cooperatives has beenbrought into the net of stampduty.
Large number of transactions subject to withholding taxes and capital value tax
escape taxation for reasons of misdeclarations and/or inadequate monitoring.
The Federal Board of Revenue (FBR) has granted exemption to third Pakistan International Sukuk Company Ltd from income tax and Capital Value Tax
A total 80 percent target in favor of stamp duty and 84 percent from Registration fee while 142 percent target of Capital Value Tax
has also been achieved.
The Finance Minister is contemplating to revive the proposal of sales tax on services with a new name as efforts to slap this tax were already failed twice, once as Capital Value Tax
(VAT) and later on as Reform General Sales Tax.
On the Capital Value Tax
, the bill states that "a tax on the capital value of an immovable property shall be payable by every person who acquires by purchase, gift, exchange, power of attorney other than revocable and time-bound (not exceeding 60 days), executed between spouses, father and son or daughter, grand parents and grand children, brother and sister, surrender or relinquishment of rights by the owner except by inheritance, or gift from a spouse, parents, grand parents, brother or a sister, an immovable property or a right to use an immovable property for more than 20 years, as is specified in sub-section 2, at the rates specified in that sub-section.
In order to remove discretion of assessing officers and to simplify assessment of customs duty on import of vehicles, a transparent system of fixed consolidated levy in lieu of custom duty, sales tax, income tax and capital value tax
in foreign exchange is being introduced.
A number of taxes collected from the Pakistan Stock Exchange namely Corporate Tax, Super Tax, Dividend Tax, Capital Gain Tax, Capital Value Tax
as well as sale tax.
A number of taxes are collected from the Stock Exchange namely, Corporate Tax, Super Tax, Dividend Tax, Capital Gains Tax, Capital Value Tax
and Sales Tax, it was informed.
Currently, Capital Value Tax
(CVT) on immovable properties is not being levied Islamabad capital territory.