The government is intending to impose an extra tax on vehicles which have a price of more than Rs. 5 million in the next budget (50 lacs).
It was to be known as the Capital Value Tax (CVT) eventually, and a rate of 2% was being imposed on the mentioned group of automobiles in the Finance Bill.
According to an adjustment to the Finance Bill 2022, the Federal Board of Revenue (FBR) has now lowered the tax percentage from around 2 percent to 1 percent. The capital value tax (CVT) is being imposed according to the worth of the asset.
In the Finance Bill 2022, all vehicles in Pakistan that cost more than Rs. 5 million would be liable to a 1% capital value tax.
