ISLAMABAD: CVT on property reduced from 4 to 2 percent

[Lahore_Real_Estate]

The federal government has decided to transfer the collection of Capital Value Tax (CVT) on immoveable property to the provinces from July 1, Israr Rauf, member (Direct Taxes) of the Federal Board of Revenue (FBR), said on Sunday.

Talking to journalists here, he said that the CVT rate on immoveable property has been reduced from four percent to two percent with effect from July 1. At the same time, the CVT exemption on transfer of immoveable property measuring below 10 marlas have also been withdrawn, he added.

Under the constitutional reforms package approved by the parliament, the taxes on transfers of immoveable property have been assigned to the provinces, Rauf said. Now, the Federal Board of Revenue would have nothing to do with the Capital Value Tax on immoveable property, as it has no more mandates to collect this CVT.