ISLAMABAD: The Federal Board of Revenue (FBR) has exempted all assets of Reko Diq Mining Company (Private) Limited from payment of capital value tax (CVT) payable under the Finance Act, 2022.

In this connection, the FBR has issued SRO-2200(I)/2022, here on Monday.

Under section 8 (Capital Value Tax 2022) of the Finance Act 2022, a tax shall be levied, charged, collected and paid on the value of assets at the rates specified in the First Schedule to this section for the tax year 2022 and onwards, provided that the tax shall be charged from July 1, 2022, in case of motor vehicles held in Pakistan. Capital value tax shall be charged on the following assets: (a) motor vehicle held in Pakistan where the engine capacity exceeds 1300 cc; or in case of electric vehicles, the battery power capacity exceeds 50kwh; (b) foreign assets of a resident individual where the value of such assets on the last day of the tax year in aggregate exceeds Rs100 million and such assets or class of assets as specified by the federal government through a notification in the official gazette at rates not exceeding five percent of the value in such manner as may be specified.

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According to the notification, in the exercise of the powers conferred by sub-section (12) of section 8 to the Finance Act 2022, the federal government has exempted all assets of the Reko Diq Mining Company (Private) Limited (formerly Tethyan Copper Company Pakistan Private Limited (TCC) from whole of the capital value tax payable under sub-section (1) of section 8 to the Finance Act 2022.

Under section 8 of the Finance Act 2022, the federal government may, by notification in the official gazette, exempt any asset or class of assets from tax subject to such conditions as may be specified.

Copyright Business Recorder, 2022