FBR Goes After Leading Businessmen for Recovery of CVT in Karachi, Pakistan

The Federal Board of Revenue (FBR) has begun the attachment of the bank accounts of prominent Karachi businessmen and bankers who have fallen behind on paying capital value tax (CVT) on foreign assets. In due course, it is anticipated that 200–250 bank accounts belonging to the wealthiest Karachi residents will be attached in order to collect the Rs. 3 billion CVT.

Taxpayers and residents who missed the deadline of December 15, 2022, to deposit CVT on their overseas assets are responsible for paying a default premium of 12 percent annually.

For the first time in history, the tax administration has contacted this many banks to try and reclaim the defaulted sum from the country’s elite. The value of a resident’s overseas assets is subject to the one percent CVT if the total value of those assets on the last day of the tax year exceeds Rs. 100 million.