Capital value tax
Capital value tax (CVT) is charged on the purchase of Modaraba certificates or registered instruments of redeemable capital including shares. CVT is a tax on the capital value of specified assets and is payable on the acquisition of an asset by every individual, association of persons, firm or company. The rate of CVT is 0.02 percent of the purchase value of the Modaraba certificates and instrument of redeemable capital.
CVT is also imposed on the real estate sector at various rates depending on the nature and location of the property.