The Federal Board of Revenue (FBR) will rectify an error in the collection of Capital Value Tax (CVT) on agro farms on the basis of per square yard instead of per square foot within the territorial jurisdiction of federal capital, as the existing practice is creating problems for general public. Sources said that the issue of CVT collection on agro farms came under discussion during last meeting of the Senate Standing Committee on Cabinet Secretariat which was held under the Chairmanship of Senator Muhammad Talha Mahmood.
The Capital Development Authority (CDA) briefed the committee on allotment of land for the purposes of agro farms, commercial and residential and the procedure of survey/demarcation of the said land and collection of tax/income tax by the FBR along with per sq yard/ft on the said land. It was transpired that Capital Value Tax (CVT) is charged by FBR on the basis of per square foot instead of Square yard. The committee chairman stated that the FBR issued a letter bearing subject "determination of taxes applicable on agro farms and industrial plots", which mistakenly or intentionally fixed the rate on the basis of square foot instead of per square yard. He said due to the blunder of FBR, a number of persons have been facing problems. Member FBR requested that a recommendation may be made by the committee regarding said issue; subsequently rectification of said mistake will be made. The committee recommended that the FBR in this regard may make necessary measures to issue revise notification with regard to collection of CVT on agro farms on the basis of per square yard instead of per square foot.
The committee recommended that the allottees of the agro farms may be allowed to utilise covered area equally and there should be no discrimination in allowing the owners of the Agro Farms to utilise the covered areas. The FBR in this regard may make necessary measures to issue revise notification immediately with regard to collection of CVT on agro farms on the basis of per square yard instead of per square foot as per past practice.
The CDA briefed the committee regarding covered area allowed for agro farms, residential and commercial buildings. During discussion the committee chairman stated that discrimination has been made with regard for the construction of the Agro Farms. The committee recommended that the construction of agro farms may be allowed equally to the all concerned and there should be no discrimination in allowing the owners of the agro farms to utilise the covered areas.
The CDA provided a summary of commercial plots sold/auctioned during the last 20 years. It was decided that list of commercial plots auctioned during last 20 years have been provided by the CDA. The purpose of the question for sharing the information has been served. Therefore, the agenda item was disposed of without any recommendation.
The CDA informed the committee that earmarked land for construction of hospital has been approved by the Prime Minister for hospital. It will be decided by the Prime Minister for allotment of land to the persons who have requested for allotment of said land. The committee directed that said land may be allotted to the administration of PIMS for construction of hospital which is dire need of the time for the public of Islamabad. The committee recommended that the 30 doctors and paramedical staff must be regularised, as the administration of PIMS has also moved a summary in their favour.