The federal government has introduced a capital value tax (CVT) on farmhouses and large residences in Islamabad.
Under the updated amendments in the Finance Bill, which passed today, farmhouses will face a fixed CVT of up to Rs. 1 million, while residential houses will incur up to Rs. 1.5 million.
The revised First Schedule of the Finance Act, 2022 now outlines updated rates and thresholds for various asset categories in Islamabad:
– Farmhouses: Fixed rates are based on area, starting at Rs. 500,000 for areas between 2,000 to 4,000 square yards and increasing to Rs. 1,000,000 for areas exceeding 4,000 square yards.
– Residential houses: Fixed rates begin at Rs. 1,000,000 for areas ranging from 1,000 to 2,000 square yards and rise to Rs. 1,500,000 for areas over 2,000 square yards.
– Other specified assets: Rates will be determined by the Federal Government, with a maximum limit of 5% of the asset’s value.
