FBR Goes After Karachi’s Leading Businessmen for Recovery of CVT

The Federal Board of Revenue (FBR) has started the attachment of bank accounts of bankers and leading businessmen of Karachi, who defaulted on the payment of capital value tax (CVT) on foreign assets.Sources confirmed to ProPakistani that the attachmen…

The Federal Board of Revenue (FBR) has started the attachment of bank accounts of bankers and leading businessmen of Karachi, who defaulted on the payment of capital value tax (CVT) on foreign assets.

Sources confirmed to ProPakistani that the attachment of 200-250 bank accounts of the richest people in Karachi is expected in due course of time for recovery of Rs. 3 billion CVT. The taxpayers/resident individuals who failed to deposit CVT on their foreign assets by December 15, 2022, are liable to pay the default surcharge at the rate of 12 percent per annum.

For the first time in history, the tax department has approached so many banks for the recovery of the defaulted amount from the elite of the country.

The one percent CVT is applicable on the value of the foreign assets of a resident individual where the value of such assets on the last day of the tax year in the aggregate exceeds Rs. 100 million.

The last date for filing of electronic declaration and payment of the CVT on foreign assets was December 15, 2022.

The FBR froze the bank accounts of the 15 richest people of Karachi today for non-payment of tax. There was a panic-like situation in banks in Karachi where huge amounts have been recovered from very rich individuals in just a single day on Friday.

Till now, 40 bank accounts have been attached and an amount of Rs. 1.3 billion has been recovered from tax defaulters. The recovery process through the attachment of bank accounts would continue in the next few days.

Source: Pro Pakistani