Collecting Income Support Levy: new wealth statement form to be issued

The Federal Board of Revenue (FBR) has decided to issue a new Wealth Statement form for collection of 0.5 percent Income Support Levy on net moveable assets from all individual taxpayers. Sources told Business Recorder here on Saturday that the new income tax return for 2013 is yet to be issued. The FBR, sources said, would also issue a new wealth statement form to incorporate necessary legal changes for ensuring the collection of the Income Support Levy.
The Income Support Levy has to be declared on net moveable assets in the new wealth statement to be issued in July-September this year. Sources said that the net moveable wealth means the excess of aggregate value of moveable assets over aggregate value of liabilities related to annual wealth owed by that person. Net value of moveable assets exceeding Rs 1 million on the last date of tax year shall be liable to levy at the rate of 0.5 percent.
For the purpose of computation of the levy, net immovable assets mean all assets except immovable property, land, building, flat etc. A tax expert was of the view that individual taxpayers strongly that a "dead levy" under the name of wealth tax has again been imposed under a new umbrella. Previously, wealth tax levy had been abolished via the Finance Act of 2003.
To enforce the levy across the board through an amendment in the Income Tax Ordinance, the FBR abolished the threshold or limit for filing of wealth statement. Now, every return filer has to file wealth statement irrespective of his annual income limit.
Earlier, there was a limit of Rs 1,000,000 of taxable income to file wealth statement. Section 116 of the Ordinance requiring an individual and a member of an AOA are also being proposed to be amended to ensure that all individuals and members of an AOP shall file their wealth statement along with their return of income for the tax year. Previously, they were required to file only if the income declared or the share of income from AOP was more than Rs 1,000,000.
Under the Income Support Levy Act, 2013, the rate of levy payable under this Act shall be 0.5 percent of the net moveable wealth exceeding one million rupees. A person who is liable to pay the Levy under this Act shall pay the Levy along with the wealth statement.