Chairman, Federal Board of Revenue (FBR), Ansar Javed, has said that the 0.5 percent Income Support Levy on net movable assets would be collected through wealth statements for which enforcement drive would be launched to ensure filing of returns/statements.
After Senate's Standing Committee on Finance meeting at Parliament House here on Monday, Javed told Business Recorder that the levy would be collected through filing of income tax return along with the wealth statement. When asked about method to ensure collection of the levy from all those having net moveable wealth exceeding one million rupees, he said that it was an enforcement issue to ensure filing of income tax returns and wealth statements.
"The FBR will handle the issue and enforcement drive is being launched to ensure filing of returns by those liable to file returns and statements. However, the individual taxpayers have to declare the amount in the wealth statements," he added. To a question about persons having vehicles exceeding worth Rs 1 million, FBR Chairman said that the board would take measures to ensure collection of the levy from all those owners of vehicles where value exceeds Rs 1 million.
During the meeting of Senate Standing Committee on Finance, he said that the Income Support Levy was not part of the income tax law, but was a separate and independent law. It is worth mentioning that the Board would issue a new Wealth Statement for collection of 0.5 percent Income Support Levy on net movable assets from all individual taxpayers. Through an amendment to the Income Tax Ordinance, the FBR has 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.
Under the Income Support Levy Act, 2013, the rate of levy payable under the Act will 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. The officer of Inland Revenue shall, by an order in writing, determine the Levy payable, and shall serve upon the person a notice of demand specifying the sum payable and the time within which it shall be paid and thereupon such sum shall be paid to such account and in such manner as may be prescribed, within the time specified in the notice.