Capital Value Tax Chapter- 01
Solution:- Non-Resident Person
i. CVT on Motor Vehicles held in Pakistan applicable from Tax year 2023 as the motor
vehicles are not more than five year older after the year of purchaseTotal CVT = CVT on Suzuki Cultus+ CVT on Honda Civic+ CVT on Audi
Total CVT = 0+ [3,800,000 - (30% of 3,800,000)x 1%]+[6,000,000 x 1%]
Total CVT = 0+ [(3,800,000 – 1,140,000)x 1%] + 60,000
Total CVT = 0+26,600 + 60,000
Total CVT = 86,600ii. CVT on Foreign assets (moveable and immoveable) although applicable from tax year
2022 as the total value of foreign assets exceeds Rs. 100 million, however its exception is
as under
In case of non-resident CVT on foreign assets is not applicable.- Resident Person
i. CVT on Motor Vehicles held in Pakistan applicable from Tax year 2023 as the motor
vehicles are not more than five year older after the year of purchaseTotal CVT = CVT on Suzuki Cultus+ CVT on Honda Civic+ CVT on Audi
Total CVT = 0+ [3,800,000 - (30% of 3,800,000)x 1%]+[6000,000x1%]
Total CVT = 0+ [3,800,000 – 1,140,000]x 1%+60,000
Total CVT = 0+26,600 + 60,000
Total CVT = 86,600ii. CVT on Foreign assets (moveable and immoveable) applicable from tax year 2022 as the
total value of foreign assets exceeds Rs. 100 million
Rs.
Value of Assets in Pak Rupees
Cost of Apartment in London (300,000 x 240) = 72,000,000
FMV of Agri Land in California (500,000 x 220) = 110,000,000
Value of Foreign Assets 182,000,000
CVT on Foreign Assets (182,000,000 x 1%) = 1,820,000