The heading introduces the subject matter: the significant increase in collections for the Workers Welfare Fund/Workers Profit Participation Fund and Capital Value Tax (CVT) during the fiscal year 2022-23, based on data from the Federal Board of Revenue (FBR).
Direct Taxes Composition:
Direct Taxes, as highlighted in the FBR data, comprise Income Tax, Workers Welfare Fund/Workers Profit Participation Fund, and Capital Value Tax. This section establishes the key components contributing to the overall direct tax collection.
Capital Value Tax (CVT) 2022 Overview:
Details the enactment of the Capital Value Tax 2022 under Section 8 of the Finance Act, 2022. It emphasizes the applicability to various assets starting from the tax year 2022. Additionally, it specifies the initiation of CVT collection for motor vehicles in Pakistan from July 1, 2022. The scope of CVT includes motor vehicles in Pakistan, foreign assets of resident individuals, and assets specified by the federal government through an official Gazette notification.
Workers Welfare Fund/Workers Profit Participation Fund Collection:
Highlights the substantial increase in the collection of the Workers Welfare Fund/Workers Profit Participation Fund, citing FBR data. The figures indicate a notable rise from Rs 14.956 billion to Rs 50.346 billion in 2022-23, representing a significant increase of 236.6 percent.
Total Collection Analysis:
Presents an overview of the combined collection of Capital Value Tax, Workers Welfare Fund, and Workers Profit Participation Fund. The total collection for 2022-23 amounted to Rs 60.451 billion, showcasing a substantial increase from Rs 15.060 billion in the previous fiscal year. The percentage increase is highlighted, indicating a remarkable rise of 301.4 percent. The Capital Value Tax 2022, enacted under Section 8 of the Finance Act, 2022, applies to various assets for the tax year 2022 onwards. For motor vehicles in Pakistan, CVT is applicable and collected from July 1, 2022. CVT extends to motor vehicles in Pakistan, foreign assets of a resident individual, and specific assets designated by the federal government through an official Gazette notification.