Government Mulls Over Wealth Tax on Movable Assets and Taxation System Amendments
Islamabad: The government is actively contemplating the introduction of a wealth tax on moveable assets, in addition to proposed amendments to the taxation systems governing the retail, agriculture, and real estate sectors. This development was reported by a reliable news source on October 1.
In pursuit of an ambitious tax collection target of PKR 9.2 trillion set by the Federal Board of Revenue (FBR), government officials have confirmed their commitment to achieving this goal. Simultaneously, they aim to elevate the tax-to-GDP ratio to 15%, which translates to PKR 13 trillion, within the next two years.
Furthermore, the government is contemplating the rationalization of the Capital Gains Tax (CGT) on immovable property, signaling a potential increase in its rate as part of a broader strategy to enhance the country's tax-to-GDP ratio.
To bolster tax compliance, the FBR is diligently working on the formulation of a comprehensive documentation law. If a consensus is reached, there is a possibility that an ordinance will be promulgated to facilitate this process. Additionally, the FBR is exploring opportunities to simplify tax returns and withholding tax regimes, aiming to streamline the tax collection process for greater efficiency.
Ref: https://www.geo.tv/latest/512491-caretakers-mull-imposing-wealth-tax-on-moveable-assets
