Govt Imposes Fixed Tax of Up to Rs. 1.5 Million on Residential Plots

The federal government has imposed a capital value tax (CVT) on farmhouses and big houses in Islamabad. According to the latest amendments in the Finance Bill which were passed today, the federal government has imposed up to Rs. 1 million fixed CVT on farmhouses and up to Rs. 1.5 million on residential houses. The First Schedule of the Finance Act, 2022 now specifies updated rates and thresholds for different categories of assets within Islamabad: Farmhouses: Fixed rates based on area, ranging from Rs. 500,000 for areas between 2,000 to 4,000 square yards, to Rs. 1,000,000 for larger areas exceeding 4,000 square yards. Residential houses: Fixed rates starting from Rs. 1,000,000 for areas between 1,000 to 2,000 square yards, increasing to Rs. 1,500,000 for areas exceeding 2,000 square yards. Other specified assets: Rates as determined by the Federal Government, capped at 5 percent of the asset’s value. For updates on everything about the Federal Budget, visit this link.