[Ather Saleem]

Someone posted CVT notice on a what’s app group, this prompted me to go through CVT law as my memory told me the CVT section is empty. So here are few points to remember:

·        The CVT law is part of Finance Act 2022 and its rules were issued in September 2022
·        Applicable on:
  o   1300cc +/ 50kwh+ vehicles; Applicable for a total of first 6 years; 10% depreciation allowed, (CVT Rate 1%)
  o   Foreign Assets (immovable & movable) of RESIDENT individual if the COST exceeds Rs. 100m – payable with income tax return (Every year); Rate 1% ; 1) if cost is known (Cost * Exchange rate on June 30 of relevant tax year) 2) If cost is not known (FMV * Exchange rate on June 30 of relevant tax year) ::: Meaning Value will keep changing as per Exchange rate every year

·        A separate FORM-A needs to be electronically filed on IRIS
·        12% Default Surcharge is payable in case of late payment
·        In Finance Act 2024, for ICT (Islamabad):
  o   Farm House Rs. 500,000 (2,000 – 4,000 square yards) and Rs. 1m if it exceeds 4,000 sq yards
  o   Residential Houses Rs. 1m  (1,000 – 2,000 square yards) and Rs. 1.5m if it exceeds 2,000 sq yards