Tax Book 2023

Capital Value Tax Chapter- 01

14. First Schedule

(See section 1)

Rates of Capital Value Tax TABLE

Sr. Assets/Description Rate

(1) (2) (3)

1. Motor vehicle mentioned in clause (a) of sub-section
   (2)

1% of the value

2. Foreign Assets held abroad mentioned in clause (b)
   of sub section (2)

1% of the value

3. Assets mentioned in clause (c) of sub section (2) As specified by Federal
   Government, not exceeding 5% of
   the value.

15. PRACTICAL EXAMPLE - COMPUTATION OF CVT FOR TAX YEAR 2022 & 2023

Mr. Asim has following assets inside and outside Pakistan as at June 30, 2022:

Rate of USD and GBP on 30- 06 - 22 is Rs. 220 and 240 respectively.

Sr. Particulars Date of

Purchase

Cost of assets

on 30- 06 - 2022

FMV of assets

on 30- 06 - 2022

1. Suzuki Cultus 1000 CC – held
   in Pakistan

10 - 08 - 2017 Rs. 2,000,000 Rs. 2,500,000

2. Honda Civic 1800 CC – held in
   Pakistan

1/09/2018 Rs. 3,800,000 Rs. 4,300,000

3. Audi E-tron 70 KWH – held in
   Pakistan

1/10/2021 Rs. 6,000,000 Rs. 7,000,000

4. Apartment – held in London 6/01/2017 GBP 300,000 GBP 600,000


5. Agri Land – held in California 16/07/2010 Cost is not
   available.

USD 500,000

Required:

You are required to compute the CVT on Motor Vehicle in each of the following situations for tax

year 2023 and CVT on Foreign Assets for the Tax year 2022.

1. Mr. Asim is a non-resident person.


2. Mr. Asim is a resident person.