Federal Board of Revenue (FBR) has planned to expand its computerised assessment of Capital Value Tax (CVT) system across the country as around 420 more CVT deduction stations will be installed at all registrar offices, soon. Sources in the Large Taxpayers Unit (LTU) told Business Recorder on Wednesday that the department is pondering to install CVT system all 420 tehsils across the country to enhance the CVT collection, which dropped, considerably.
They said that the negative trend of about 26 per cent was witnessed in its collection. They said legal procedures in this regard are underway and hoped that the installation of CVT system would commence shortly. They said the decision was aimed to monitor the transactions made in the remote areas and added that board is considering posting its officials at all CVT deduction stations to assist registrar and taxpayers as well.
To a question, they said the board deducted 2 percent on recorded value at both commercial and residential areas, while charging Rs 50 per square yard when the value was not mentioned in the registrar's record. They said the board has also planned to install CVT at all utility offices including Karachi Electric Supply Company (KESC) and Sui Southern Gas Company (SSGC) in particular to evaluate capacity of individuals or a company, paying taxes.
It is a complete online solution, which certainly improves data processing of CVT on immovable and movable assets across the country, they maintained. They dispelled the perception regarding its security, saying that the CVT applications and recorded data are completely secure and would only be accessed by concerned authority.
They said that some four CVT stations are successfully working in the metropolis and added that all transactions made through CVT system are being monitored and controlled via middleware control centre software. Furthermore, they said the software would automatically deduct CVT in all transactions of registered and non-registered buyers and sellers and would process on regional basis.